Is there a Guaranty of License Agreement included in the Crowne Plaza license agreements?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Rhode Island Franchise And Distributorship Act
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for a Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Rhode Island:
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- Section 19-28.14 of the Rhode Island Franchise Investment Act provides that: "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." This provision will also apply to the Guaranty.
Amendment To The Holiday Hospitality Franchising, LLC
Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To
The California Department of Financial Protection and Business Oversight
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of California:
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- The License and Guaranty require application of the laws of Georgia. In accordance with 5050.23 Sec. 310.114.1(c)(5)(B)(v), this provision may not be enforceable under California law.
Source: Item 22 — Contracts (FDD pages 99–100)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the license agreement may include a Guaranty. Specifically, the California Amendment notes that "The License and Guaranty require application of the laws of Georgia. In accordance with 5050.23 Sec. 310.114.1(c)(5)(B)(v), this provision may not be enforceable under California law." This suggests that a Guaranty is typically part of the Crowne Plaza license agreement.
Additionally, the Rhode Island Franchise and Distributorship Act amendment includes a provision that states: "This provision will also apply to the Guaranty." This statement indicates that the Guaranty is a component of the Crowne Plaza license agreement, and its terms are subject to the laws of Rhode Island.
Prospective franchisees should carefully review the specific terms and conditions of the Guaranty within the license agreement with their legal counsel to understand their obligations and rights fully. They should also be aware of how state laws, such as those in California and Rhode Island, may impact the enforceability of certain provisions within the Guaranty.