Under what conditions can IHG terminate the Crowne Plaza license with advance notice?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Termination by IHG on Advance Notice.
- (1) In accordance with notice from IHG to Licensee, this License will terminate (without any further notice unless required by law), provided that:
- (a) the notice is mailed at least 30 days (or longer, if required by law) in advance of the termination date;
- (b) the notice reasonably identifies one or more breaches of Licensee's obligations; and
- (c) the breach(es) are not fully remedied within the time period specified in the notice.
- (2) If Licensee shall have engaged in a violation of this License, for which a notice of termination was given and termination failed to take effect because the default was remedied during the then preceding 12 months, the period given to remedy defaults will, if and to the extent permitted by applicable law, thereafter be 10 days instead of 30 (provided, however, if there have been two or more violations of this License in the preceding twelve months for which notices of termination were given, upon the next violation, if and to the extent permitted by applicable law, this License may be terminated by IHG immediately upon notice).
- (3) In any judicial proceeding in which the validity of termination is at issue, IHG will not be limited to the reasons set forth in any notice sent under this paragraph.
- (4) If Licensee fails to cure its breach of its obligations timely and in the manner required by IHG, IHG may in its sole discretion suspend the Hotel from access to the Brand System. IHG may also in its sole discretion remove the Hotel's listing from any website services and divert reservations previously made for the Hotel to other Brand System Hotels or IHG Portfolio Brand Hotels. Licensee must pay all costs arising from suspension from the Brand System. IHG's election to suspend the Hotel from said access rather than terminate this License will not: (i) constitute a waiver of any breach by Licensee or of any rights IHG otherwise has to terminate this License; (ii) constitute actual or constructive termination of this License; (iii) constitute an abandonment by IHG of this License; or (iv) entitle Licensee to any compensation of any kind for any alleged losses Licensee might incur as a result of said suspension.
- (5) IHG's notice of termination or suspension of services shall not relieve Licensee of its obligations under this License.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, IHG can terminate the license agreement with advance notice under specific conditions related to breaches of the agreement by the franchisee. IHG must provide written notice to the franchisee at least 30 days in advance of the termination date, unless a longer period is required by law. The notice must clearly identify one or more breaches of the franchisee's obligations under the license agreement.
The franchisee must fail to fully remedy the identified breaches within the time period specified in the termination notice. If the franchisee has previously violated the license agreement within the preceding 12 months, for which a termination notice was given but termination did not occur because the default was remedied, the period to remedy future defaults may be reduced to 10 days, if permitted by law. If there have been two or more violations in the preceding twelve months for which termination notices were given, IHG may terminate the license immediately upon notice for the next violation, if permitted by law.
IHG retains the right to suspend the hotel's access to the Brand System if the franchisee fails to cure its breach in a timely manner. IHG may also remove the hotel's listing from websites and divert reservations to other hotels within the Brand System. The franchisee is responsible for all costs arising from such suspension. It's important to note that IHG's decision to suspend services rather than terminate the license does not constitute a waiver of any breach or rights to terminate, nor does it entitle the franchisee to any compensation for losses resulting from the suspension.