Under what condition is the Financing Agreement deemed null and void for a Crowne Plaza hotel?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The Parties acknowledge and agree that (i) the Financing Agreement shall not take effect until installation and Acceptance of the Products and Services ordered, and (ii) the Financing Agreement shall be deemed null and void and of no force or effect in the event that the Joinder Agreement is terminated prior to the Financing Agreement taking effect.
Following Acceptance of the Products and Services ordered and the Financing Agreement taking effect, the Financing Agreement shall become an independent agreement between Hotel and HPFS and shall not be affected by a termination of the Agreement or Joinder Agreement.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, a Financing Agreement between the hotel and HPFS (likely referring to Hewlett-Packard Financial Services) will be considered null and void under a specific condition. The Financing Agreement, which is related to the installation and acceptance of products and services, will not take effect until these conditions are met.
Specifically, the FDD states that if the Joinder Agreement is terminated before the Financing Agreement takes effect, the Financing Agreement is deemed null and void. This implies that the Joinder Agreement serves as a preliminary agreement that must remain active for the Financing Agreement to become valid.
However, once the products and services are accepted and the Financing Agreement takes effect, it becomes an independent agreement between the hotel and HPFS. At that point, the Financing Agreement is no longer affected by any termination of the initial License Agreement or Joinder Agreement. This provision protects HPFS's financial interests by ensuring that their financing arrangement remains in place even if the hotel's relationship with Crowne Plaza changes.