Under what circumstances can IHG withhold consent from a Crowne Plaza licensee, regardless of other reasons?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) IHG's consent, whenever required, may be withheld if any breach by Licensee exists under this License, without regard for any other basis for withholding such consent. Approvals and consents by IHG will not be effective unless evidenced by a writing duly executed on behalf of IHG.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, IHG may withhold consent if a franchisee is in breach of the License Agreement, irrespective of any other potential reasons for withholding such consent. This means that if a Crowne Plaza franchisee violates any term of their agreement with IHG, IHG is entitled to deny any request for consent or approval the franchisee might need.
This provision gives IHG significant power over the franchisee's operations. For example, if a franchisee wanted to undertake a renovation or make a significant change to their business, IHG could withhold consent if the franchisee was behind on royalty payments or had failed to meet certain brand standards. The franchisee's sole recourse in such a situation is to seek specific performance or a declaratory judgment to enforce the license provision.
This clause underscores the importance of strict compliance with all terms of the franchise agreement. Prospective Crowne Plaza franchisees should carefully review the agreement to understand their obligations and the potential consequences of any breach. It is also important to note that IHG's approvals and consents are only effective if they are documented in writing and duly executed on behalf of IHG.