Under what circumstances can either party terminate the Crowne Plaza agreement 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.
1.1 This Agreement may be terminated before the scheduled expiration date only in the following circumstances: (i) either party may terminate the Agreement if the other party fails to comply with a material term or condition of the Agreement and does not remedy the failure within 60 days after receiving written notice specifying the non-compliance; (ii) Company may terminate the Agreement if at any time during the Term the beverage marketing agreement between Company and Six Continents Hotels, Inc. is terminated.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, several circumstances allow either party to terminate the agreement before its scheduled expiration. 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 notice from IHG, IHG can terminate the agreement immediately. Additionally, the agreement automatically terminates if the Hotel Agreement expires or terminates. IHG can also terminate immediately if a Hotel Bankruptcy Event occurs.
Furthermore, a standard terms and conditions agreement allows either party to terminate if the other fails to comply with a material term or condition and does not remedy the failure within 60 days after written notice. The company can also terminate the agreement if the beverage marketing agreement between the company and Six Continents Hotels, Inc. is terminated during the term.
For Crowne Plaza franchisees, these termination clauses highlight the importance of adhering to the franchise agreement and maintaining financial stability. Failure to meet obligations or facing bankruptcy could lead to termination. The automatic termination linked to the Hotel Agreement emphasizes the interconnectedness of these agreements. Franchisees should be aware of these conditions and seek legal counsel to fully understand their rights and obligations under the agreement.