Under what condition can AT&T terminate all services under the Participation Agreement for a Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If the Customer Agreement ceases to be in effect, AT&T may at is option terminate all Services under this Participation Agreement.
- 8.2 Termination or Suspension.
The following additional termination provisions apply:
- (a) Material Breach.
If either party fails to perform or observe any material warranty, representation, term or condition of this Agreement, including non-payment of charges, and such failure continues unremedied for 30 days after receipt of notice, the aggrieved party may terminate (and AT&T may suspend and later terminate) the affected Service Components and, if the breach materially and adversely affects the entire Agreement, terminate (and AT&T may suspend and later terminate) the entire Agreement.
- (c) Fraud or Abuse.
AT&T may terminate or suspend an affected Service or Service Component and, if the activity materially and adversely affects the entire Agreement, terminate or suspend the entire Agreement, immediately by providing Eligible Participant with as much advance notice as is reasonably practicable under the circumstances if Eligible Participant, in the course of breaching the Agreement: (i) commits a fraud upon AT&T; (ii) uses the Service to commit a fraud upon another party; (iii) unlawfully uses the Service; (iv) abuses or misuses AT&T's network or Service; or (v) interferes with another customer's use of AT&T's network or services.
If the options described in Section 7.3 (Infringing Services) are not reasonably available, AT&T may at its option terminate the affected Services or Service Components without liability other than as stated in Section 7.1 (AT&T's Obligations).
- (e) Hazardous Materials.
If AT&T encounters any Hazardous Materials at the Site, AT&T may terminate the affected Services or Service Components or may suspend performance until Eligible Participant removes and remediates the Hazardous Materials at Eligible Participant's expense in accordance with applicable law.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, AT&T has the option to terminate all services under the Participation Agreement if the Customer Agreement ceases to be in effect. This means that the agreement between AT&T and IHG (InterContinental Hotels Group, Crowne Plaza's parent company) is a prerequisite for the individual Crowne Plaza franchisee's Participation Agreement to remain active. If the overarching agreement between AT&T and IHG is terminated for any reason, AT&T can then terminate the services provided to the individual Crowne Plaza location.
Additionally, AT&T can terminate the entire agreement if a party fails to perform any material term or condition, including non-payment of charges, and the failure continues for 30 days after notice. AT&T may also suspend services during this 30-day period. AT&T can also terminate the agreement immediately if the Crowne Plaza franchisee commits fraud upon AT&T, uses the service to commit fraud, unlawfully uses the service, abuses AT&T's network, or interferes with another customer's use of AT&T's services.
Furthermore, AT&T can terminate affected services or service components if options described in Section 7.3 (Infringing Services) are not reasonably available or if AT&T encounters any Hazardous Materials at the site. In the case of hazardous materials, AT&T may also suspend performance until the franchisee removes and remediates the hazardous materials at their own expense. These termination conditions are important for a prospective franchisee to understand, as they outline the circumstances under which AT&T can discontinue providing services, potentially impacting the hotel's operations.