Under what conditions can an Eligible Participant terminate a Service Component without liability for termination fees, shortfall charges, or cancellation charges related to Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) If Eligible Participant terminates this Agreement or an affected Service or Service Component for cause in accordance with the Agreement or if AT&T terminates a Service or Service Component other than for cause, Eligible Participant will not be liable for the termination charges set forth in this Section 8.4.
- (b) If Eligible Participant or AT&T terminates a Service or Service Component with fewer than forty-five (45) days prior to Cutover, Eligible Participant (i) will pay any pre-Cutover termination or cancellation charges set out in a Pricing Schedule or Service Publication, or (ii) in the absence of such specified charges, will reimburse AT&T for time and materials incurred prior to the effective date of termination, plus any third party charges resulting from the termination.
- (c) In the event Eligible Participant terminates the Managed Fortinet Solution at any given Site after Cutover and prior to the end of the Minimum Payment Period for any reason other than for AT&T's material breach, Eligible Participant must provide AT&T at least ninety (90) days' prior written notice and is responsible to pay for all Services rendered, expenses incurred hereunder, termination charges equal to the total Monthly Recurring Charges for the AT&T Equipment and AT&T MSS and Managed Fortinet Solution and for any applicable charges associated with early termination multiplied by the number of months remaining in the Minimum Payment Period, at the time of termination.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, an Eligible Participant can terminate a Service or Service Component without incurring termination charges under specific conditions. If the Eligible Participant terminates the agreement or a specific service component due to cause, as defined within the agreement, they will not be liable for termination charges. Similarly, if AT&T, the service provider, terminates a service or service component for reasons other than cause, the Eligible Participant is also exempt from termination fees.
However, there are stipulations regarding the timing of termination. If either the Eligible Participant or AT&T terminates a service or service component with fewer than forty-five (45) days before the 'Cutover' (likely referring to the service implementation date), the Eligible Participant may be responsible for certain pre-Cutover termination or cancellation charges. These charges would be outlined in a Pricing Schedule or Service Publication. If such specified charges are absent, the Eligible Participant would need to reimburse AT&T for the time and materials incurred before the termination date, in addition to any third-party charges resulting from the termination.
Furthermore, if the Eligible Participant terminates the Managed Fortinet Solution after the Cutover but before the end of the Minimum Payment Period for reasons other than AT&T's material breach, they must provide at least ninety (90) days' prior written notice. In this scenario, the Eligible Participant is responsible for all services rendered, expenses incurred, and termination charges. These termination charges are equivalent to the total Monthly Recurring Charges for the AT&T Equipment, AT&T MSS, and Managed Fortinet Solution, multiplied by the number of months remaining in the Minimum Payment Period at the time of termination.