Under what conditions can the Company remove dispensing equipment from a Crowne Plaza location?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Each piece of Equipment is leased commencing on its installation date (the "Commencement Date").
Equipment Lessee may request the removal of any Equipment upon thirty (30) days prior written notice to Company, and in addition, Company may remove any piece of Equipment for any reason upon thirty (30) days prior written notice to Customer.
Removal of Equipment will not affect the term of any agreement between the parties.
If this Lease is terminated with respect to any piece of Equipment for any reason, other than Company removing a piece of Equipment without cause under this section, prior to 100 months from the Commencement Date for that piece of Equipment, Equipment Lessee will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation, (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the Company can remove dispensing equipment from a hotel under two primary conditions. First, the Crowne Plaza franchisee can request the removal of any equipment by providing the Company with thirty days prior written notice. Second, the Company itself can remove any piece of equipment for any reason, also with thirty days prior written notice to the Customer.
However, if the Company removes equipment without cause before 100 months from the installation date, or if the lease is terminated for any reason other than the Company removing the equipment without cause before this 100-month period, the franchisee will be responsible for covering the actual cost of removal, including standard shipping and handling charges, and remanufacturing of the equipment. Additionally, the franchisee will be responsible for the unamortized portion of the costs of installation and non-serialized parts, such as pumps, racks, and regulators, and other ancillary equipment.
These financial responsibilities do not apply if the equipment is defective or otherwise needs replacement. The terms of the lease remain in effect until the equipment is removed from the franchisee's premises, even if any agreement into which the lease is incorporated expires or terminates. This clause ensures that Crowne Plaza is compensated for its investment in equipment if the agreement is terminated early or if the franchisee requests removal before the equipment is fully amortized, unless the removal is due to equipment failure or defect.