Under what circumstances can Crowne Plaza terminate the Equipment Lease?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The occurrence of any of the following will constitute a "Default" by Equipment Lessee: (a) nonpayment by Equipment Lessee when due of any amount due and payable under this Lease; (b) failure of Equipment Lessee to comply with any provision of this Lease, and failure of Equipment Lessee to remedy, cure, or remove such failure within twenty (20) days after receipt of written notice thereof from Company; (c) any statement, representation, or warranty of Equipment Lessee to Company in this Lease that is untrue as of the date made; (d) Equipment Lessee's becoming insolvent or unable to pay its debts as they mature, or Equipment Lessee making an assignment for the benefit of creditors, or any proceeding, whether voluntary or involuntary, being instituted by or against Equipment Lessee alleging that Equipment Lessee is insolvent or unable to pay its debts as they mature; (e) appointment of a receiver, liquidator, trusfee, custodian or other similar official for any of the Equipment or for any property in which Equipment Lessee has an interest; (f) seizure of any of the Equipment; (g) default by Equipment Lessee under the terms of any note, document, agreement or instrument evidencing an obligation of Equipment Lessee to Company or to any affiliate of The Coca-Cola Company, whether now existing or hereafter arising; or (h) Equipment Lessee taking any action with respect to the liquidation, dissolution, winding up or otherwise discontinuing the conduct of its business.
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- REMEDIES. Upon the occurrence of any Default or at any time thereafter during the continuance thereof, Company may terminate this Lease as to any or all items of Equipment, may enter Equipment Lessee's premises and retake possession of the Equipment at Equipment Lessee's expense, and will have all other remedies at law or in equity for breach of the Lease.
Equipment Lessee acknowledges that in the event of a breach of Sections 4 or 5 or a failure or refusal of Equipment Lessee to relinquish possession of the Equipment in breach of this section 12 following termination or Default, Company's damages may be difficult or impossible to ascertain, and Equipment Lessee therefore agrees that Company will have the right to seek an injunction in any court of competent jurisdiction restraining said breach and granting Company the right to immediate possession of the Equipment.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the company can terminate the equipment lease under specific circumstances, primarily related to defaults by the Equipment Lessee. These defaults include nonpayment of amounts due under the lease, failure to comply with any provision of the lease without rectifying it within 20 days of written notice, or any untrue statement or warranty made by the Equipment Lessee. Additionally, events such as the Equipment Lessee becoming insolvent, making an assignment for the benefit of creditors, or the appointment of a receiver can trigger termination. Defaulting on obligations to The Coca-Cola Company or its affiliates, or actions leading to the liquidation or discontinuation of the business, also constitute grounds for termination.
Upon the occurrence of any of these defaults, Crowne Plaza has the right to terminate the lease for any or all items of equipment. They may enter the Equipment Lessee's premises to repossess the equipment at the Equipment Lessee's expense. In addition to terminating the lease and repossessing the equipment, Crowne Plaza retains all other legal and equitable remedies for breach of the lease.
Furthermore, if the Equipment Lessee breaches sections 4 or 5 of the lease, or fails to return the equipment after termination or default, Crowne Plaza can seek an injunction from a court to restrain the breach and ensure the immediate return of the equipment. This acknowledges that quantifying damages in such situations can be difficult, thus justifying the right to seek injunctive relief.