Under what conditions is a Crowne Plaza agreement considered to be in default if a payment is not made?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The occurrence of any of the following will constitute a "Default" by Equipment Lessee: (a) nonpayment by Equipment Lessee when due of any amount due and payable under this Lease; (b) failure of Equipment Lessee to comply with any provision of this Lease, and failure of Equipment Lessee to remedy, cure, or remove such failure within twenty (20) days after receipt of written notice thereof from Company
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, a default occurs if the Equipment Lessee fails to make payments when due for any amount payable under the lease. However, the Equipment Lessee has an opportunity to remedy this.
Specifically, if the Equipment Lessee fails to comply with any provision of the lease, they have twenty (20) days after receiving written notice from the company to remedy, cure, or remove such failure. If the franchisee does not resolve the non-payment within this 20-day period after written notice, it constitutes a default under the terms of the lease agreement.
This clause protects Crowne Plaza by ensuring timely payments, while also giving the franchisee a window to correct any payment oversights before being declared in default. It is important for prospective franchisees to understand these conditions and ensure they have systems in place to manage payments and address any potential issues promptly to avoid default.