Under what condition is a Crowne Plaza client prohibited from assigning or transferring their agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
11 Assignment; Material Changes
- 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.
- 11.4 Assignment of Right to Receive Settlement Proceeds by Client. You may not enter into any agreement that would require the transfer of any payments or proceeds from Card transactions covered by the Agreement to the custody or control of any Third Party. You may not assign the right of payment under the Agreement to any Third Party. In the event that you make an assignment (or provide a security interest) of receivables covered by the Agreement, then we may, at our option, elect to (a) refuse to acknowledge such assignment unless accompanied by an authorization to initiate both debits and credits to the bank account of the assignee, (b) terminate the Agreement immediately, or (c) charge for any transfers that we are called upon to make manually to fulfill such an assignment at the rate of $100 per transfer.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, a client is prohibited from transferring or assigning their agreement, or any portion of it, without prior written consent from Crowne Plaza. This prohibition extends to attempts to sublicense or otherwise transfer any licensed rights, whether by operation of law or other means.
If a client violates this condition by transferring or assigning the agreement without Crowne Plaza's consent, Crowne Plaza has the right to void the transfer, assignment, or sublicense. Additionally, Crowne Plaza can suspend services, declare an Event of Default, and exercise any other rights they possess under the agreement.
Furthermore, the document specifies that a client cannot enter into any agreement that would require the transfer of payments or proceeds from card transactions to a third party, nor can they assign the right of payment under the agreement to any third party. If a client does make such an assignment or provides a security interest in receivables covered by the agreement, Crowne Plaza may refuse to acknowledge the assignment unless it includes authorization to debit and credit the assignee's bank account. Alternatively, Crowne Plaza can terminate the agreement immediately or charge a fee of $100 per transfer for manually fulfilling the assignment.