Under what circumstances can the Crowne Plaza agreement be terminated before its scheduled expiration date?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- 8.3 Termination for Hotel Bankruptcy Event. IHG may terminate this Agreement, in whole or in part, immediately upon written notice to Hotel upon a Hotel Bankruptcy Event.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the franchise agreement can be terminated early under specific circumstances. IHG (InterContinental Hotels Group) can terminate the agreement if the hotel defaults on its obligations and fails to correct the issue within 20 days of written notice. If the hotel breaches the Hotel Agreement and fails to cure the default within 10 days after receiving notice from IHG or an IHG Affiliate, IHG can terminate the agreement immediately.
Additionally, the Crowne Plaza agreement will automatically terminate if the Hotel Agreement expires or terminates. IHG also has the right to terminate the agreement immediately if a Hotel Bankruptcy Event occurs.
It is important to note that in the state of Washington, the Washington Franchise Investment Protection Act may supersede the franchise agreement regarding termination and renewal. Similarly, in Virginia, if any grounds for default or termination stated in the License do not constitute "reasonable cause" as defined in the Virginia Code, that provision may not be enforceable.