Under what circumstances can Crowne Plaza void a transfer, assignment, or sublicense of the Agreement by the client?

According to Crowne Plaza's 2025 Franchise Disclosure Document, Crowne Plaza can void a transfer, assignment, or sublicense of the agreement if the franchisee attempts to transfer or assign the agreement, or any portion of it, or if the franchisee attempts to sublicense or otherwise transfer any licensed rights, without obtaining Crowne Plaza's prior written consent. This applies whether the transfer occurs by operation of law or otherwise.

In addition to voiding the transfer, assignment, or sublicense, Crowne Plaza also has the right to suspend services, declare an Event of Default, and exercise any other rights it possesses under the agreement if such an unapproved transfer occurs. This provision underscores the importance of obtaining explicit written consent from Crowne Plaza before making any changes to the ownership or operational control of the franchise.

This level of control is typical in franchising, as the franchisor needs to ensure that any new operator meets their standards and is capable of maintaining the brand's reputation. A prospective Crowne Plaza franchisee should carefully review the conditions under which transfers are permitted and the process for obtaining consent to avoid triggering these penalties.