Under what circumstances can Crowne Plaza void a transfer, assignment, or sublicense of the Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.1 Assignment by Client. If you transfer or assign the Agreement or any portion of it, or if you attempt to sublicense or otherwise transfer any licensed rights, in each case whether by operation of law or otherwise, without our prior written consent: (a) we may void such transfer, assignment, and/or sublicense; and (b) we may suspend the Services, declare an Event of Default, and exercise any of our other rights under the Agreement.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, Crowne Plaza has the right to void a transfer, assignment, or sublicense of the agreement under specific conditions. If a franchisee transfers or assigns the agreement, or any part of it, or attempts to sublicense or transfer any licensed rights without obtaining Crowne Plaza's prior written consent, Crowne Plaza has the option to void the transfer, assignment, or sublicense.
In addition to voiding the agreement, Crowne Plaza can also suspend services, declare an Event of Default, and exercise any other rights it possesses under the agreement if an unapproved transfer, assignment, or sublicense occurs. This provision underscores the importance of obtaining explicit approval from Crowne Plaza before making any changes to the control or operation of the franchise.
This requirement is typical in franchising, as franchisors like Crowne Plaza need to maintain control over their brand standards and ensure that any new operators meet their qualifications. A prospective franchisee should carefully review the conditions under which transfers, assignments, or sublicenses are permitted to avoid unintentionally triggering these penalties.