Under what circumstances will a Crowne Plaza client be required to reimburse SCH for taxes paid?

According to the 2025 Crowne Plaza FDD, a client is obligated to reimburse SCH (presumably a service provider) for specific taxes under certain conditions. The agreement stipulates that the client is responsible for paying any and all taxes related to the contract or its execution. This includes sales or use taxes, but excludes SCH's income taxes.

Specifically, if foreign, federal, state, or local taxes are assessed on the services provided, and SCH has already paid these taxes, the client is required to promptly reimburse SCH. However, this reimbursement requirement does not extend to taxes based on the income of SCH, its employees, or personnel provided by SCH under the agreement.

In practical terms, this means a Crowne Plaza franchisee using SCH's services needs to be prepared to cover taxes like sales tax or use tax on those services. However, the franchisee is not responsible for SCH's corporate income taxes or the income taxes of SCH's staff. This arrangement is fairly standard in service contracts, where the end client typically bears the burden of consumption-based taxes while the service provider remains responsible for their own income taxes.