conditional

Under what circumstances will the Crowne Plaza Participation Agreement terminate, making the Hotel ineligible to receive services?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Co-Terminous Agreement. Hotel acknowledges and agrees that, if/when this Participation Agreement, the SPS Agreement, or Hotel's right to operate a hotel under an IHG brand expires or terminates for any reason, this Participation Agreement shall terminate and Hotel shall no longer be eligible to receive services under this Participation Agreement.
    1. Eligible Participant hereby represents and warrants that, upon execution of this Participation Agreement, it is a Property under the Customer. If Customer notifies AT&T that an Eligible Participant has ceased to be a Property, AT&T shall notify the Eligible Participant that this Participation Agreement is terminated.

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to the 2025 FDD, a Crowne Plaza Participation Agreement will terminate under specific conditions, resulting in the hotel's ineligibility to receive services under that agreement. One key condition is if the Participation Agreement itself, the Secure Payment Solution (SPS) Agreement, or the hotel's right to operate under an IHG brand expires or terminates for any reason. This co-termination clause ensures that the services provided under the Participation Agreement are linked to the hotel's continued operation as a Crowne Plaza property.

Additionally, if AT&T notifies the Eligible Participant (hotel) that it has ceased to be a Property, AT&T will notify the Eligible Participant that the Participation Agreement is terminated. This implies that the hotel's status as an active and compliant member within the IHG system is crucial for maintaining the agreement.

These termination conditions are important for prospective Crowne Plaza franchisees to understand, as they highlight the interconnectedness of various agreements and the importance of maintaining brand standards and operational compliance. Failure to adhere to these standards or a termination of the franchise agreement can lead to a loss of services provided under the Participation Agreement, potentially impacting the hotel's operations and guest experience.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.