Under what conditions can IHG Tech terminate the MTSA agreement for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In | Summary | |
|---|---|---|---|
| e. Termination by | License: Not | MTSA may be terminated by IHG Tech | |
| Holiday without | applicable | for convenience on 90 days’ prior | |
| Cause | MTSS: 10.1 | written notice to the licensee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 87–91)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, IHG Tech (InterContinental Hotels Group Tech) has the right to terminate the MTSA (Mandatory Technology Standards Agreement) for a Crowne Plaza franchise without a specific cause. This means IHG Tech can end the agreement for any reason, or even no reason at all.
However, IHG Tech must provide the Crowne Plaza franchisee with a 90-day written notice before terminating the MTSA. This advance notice gives the franchisee some time to prepare for the termination and adjust their technology systems accordingly.
This termination clause is a significant consideration for prospective Crowne Plaza franchisees. While the FDD outlines that IHG Tech can terminate the MTSA without cause, it is important for franchisees to understand their rights and obligations under the agreement, including the implications of a potential termination. Franchisees should seek clarification from Crowne Plaza regarding the typical reasons for MTSA termination and the potential impact on their business operations.