Under the AT&T Participation Agreement, is a Crowne Plaza customer responsible for the Eligible Participant's performance?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Customer shall not be responsible for Eligible Participant's performance under this Participation Agreement, and this Participation Agreement is to be considered by both Eligible Participant and AT&T as an independent agreement between Eligible Participant and AT&T. For purposes of clarification, Eligible Participant shall be solely liable for its own obligations and liabilities under this Participation Agreement.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a Crowne Plaza customer is not responsible for the Eligible Participant's performance under the AT&T Participation Agreement. The agreement specifies that it is to be considered an independent agreement between the Eligible Participant and AT&T. The Eligible Participant is solely liable for its own obligations and liabilities under this agreement.
This arrangement protects the Crowne Plaza customer from being held accountable for any failures or shortcomings on the part of the Eligible Participant in fulfilling their obligations to AT&T. It clarifies that the customer's relationship is with AT&T, and the Eligible Participant's performance is a matter strictly between them and AT&T.
This clause ensures that the Crowne Plaza customer's financial and legal responsibilities are limited to their own agreement with AT&T, providing a clear delineation of liability and preventing potential disputes arising from the Eligible Participant's actions or inactions. This is a standard practice to protect customers in multi-party agreements.