Under what circumstances can the Crowne Plaza agreement be terminated immediately by either party?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1.1 Hotel Responsibilities. Hotel will, and will cause the Hotel Agents to: (a) test the Next-Gen Payments Solution in the environment of Hotel before use; (b) ensure that the personnel of Hotel are using the Next-Gen Payments Solution correctly; (c) enter information into the Next-Gen Payments Solution accurately and completely; and (d) report any actual or suspected software errors or failures discovered in the course of using the Next-Gen Payments Solution to IHG.
- 7.2 Disclaimer. IHG is not the licensor or provider of any third party solutions made available to Hotel under this Agreement and offers no warranties on the third party solutions. In agreeing to the Third Party Terms, Hotel is relying solely on the warranties of the Third Party Providers, if any, expressly passed through to Hotel under the Third Party Terms. EXCEPT AS EXPRESSLY STATED IN THIS SECTION 7.0, IHG HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, FOR NETWORK CONNECTIVITY, AVAILABILITY, SOFTWARE, HARDWARE, SYSTEMS, OR TRANSACTION PROCESSING OR FOR MERCHANTABILITY, SATISFACTORY QUALITY AND FITNESS FOR A PARTICULAR PURPOSE. EXCEPT FOR ANY PASS-THROUGH WARRANTY MADE BY A THIRD PARTY PROVIDER OF SERVICES, ALL SERVICES, AND ALL SUPPORT MATERIALS AND OTHER DATA, SOFTWARE OR OTHER ITEMS ARE PROVIDED "AS IS" AND "WHERE IS".
8.0 TERMINATION.
- 8.1 Termination for Cause. If Hotel defaults in the performance of any of its obligations under this Agreement and does not cure such default within twenty (20) days after receipt of a written notice of default from IHG, then IHG may terminate this Agreement, in whole or in part, as of the termination date specified in such written notice. If Hotel breaches the Hotel Agreement, and fails to cure such default within ten (10) days after receipt of a notice of default from IHG or an IHG Affiliate, then IHG may terminate this Agreement, in whole or in part, immediately upon written notice to Hotel as of the termination date specified in the notice, without any cure period.
- 8.2 Termination or Expiration of the Hotel Agreement. In the event that the Hotel Agreement terminates or expires, then this Agreement shall automatically terminate.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, there are several circumstances that allow for immediate termination of the agreement. IHG (InterContinental Hotels Group) can terminate the agreement immediately if the Hotel breaches the Hotel Agreement and fails to cure the default within ten days after receiving notice. Additionally, IHG can terminate the agreement immediately upon written notice if a Hotel Bankruptcy Event occurs.
Furthermore, the agreement may be terminated immediately, without notice, upon the occurrence of specific Events of Default, such as those specified in subsections 12.3(b), 12.3(c), 12.3(d), 12.3(g) for any breach of Section 13, 12.3(i), or 12.3(k) (or for an Event of Default under Section 12.3(g) for failing to establish or maintain funds in a Reserve Account). SCH (presumably a service provider) may elect to terminate the agreement immediately upon written notice to the Client in the event of a termination or expiration of the License Agreement or in the event of a Change of Control.
These termination clauses highlight the importance of adhering to the terms of the agreements and maintaining financial stability. For a prospective Crowne Plaza franchisee, understanding these conditions is crucial, as failure to comply can lead to immediate termination of the agreement and potential financial repercussions. It is also important to note that some of these terms may be superseded by state laws, such as those in North Dakota and Virginia, which may restrict or modify the franchisor's ability to enforce certain termination provisions.