Under what conditions can AT&T terminate all services under the Crowne Plaza Participation Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- If the Customer Agreement ceases to be in effect, AT&T may at is option terminate all Services under this Participation Agreement.
- (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.
- (b) Materially Adverse Impact.
If AT&T revises a Service Publication, the revision has a materially adverse impact on Eligible Participant and AT&T does not affect revisions that remedy such materially adverse impact within thirty (30) days after receipt of notice from Eligible Participant, then Eligible Participant may, as Eligible Participant's sole remedy, elect to terminate the affected Service Components on thirty (30) days' notice to AT&T, given not later than ninety (90) days after Eligible Participant first learns of the revision to the Service Publication. "Materially adverse impacts" do not include changes to non-stabilized pricing, changes required by governmental authority, or assessment of or changes to additional charges such as surcharges or taxes.
- (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.
This Agreement may be terminated immediately upon notice by either party if the other party becomes insolvent, ceases to be a Property (in the case of Eligible Participant), is the subject of a bankruptcy petition, enters receivership or any state insolvency proceeding or makes an assignment for the benefit of its creditors.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, AT&T has the option to terminate all services under the Participation Agreement if the Customer Agreement ceases to be in effect. Additionally, AT&T can terminate the agreement under the following conditions: if either party fails to perform any material term of the agreement, including non-payment of charges, and the failure continues for 30 days after notice; if AT&T revises a Service Publication with a materially adverse impact on the Eligible Participant and does not remedy it within 30 days of notice; or immediately if the Eligible Participant 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 network.
Furthermore, AT&T may terminate affected services or service components if options described in Section 7.3 (Infringing Services) are not reasonably available. AT&T can also terminate affected services or suspend performance if it encounters any Hazardous Materials at the site until the Eligible Participant removes and remediates the Hazardous Materials at their expense. The agreement can also be terminated immediately if either party becomes insolvent, ceases to be a Property (in the case of Eligible Participant), is subject to a bankruptcy petition, enters receivership or any state insolvency proceeding, or makes an assignment for the benefit of its creditors.
These termination clauses are typical in franchise agreements to protect the interests of both parties. For a prospective Crowne Plaza franchisee, it's crucial to understand these conditions to avoid potential disruptions in service. Franchisees should ensure timely payments, avoid any fraudulent activities, and maintain a safe working environment to prevent AT&T from terminating the services. Understanding these terms can help franchisees manage their operations effectively and maintain a good relationship with service providers like AT&T.