Under what conditions related to termination charges will a Crowne Plaza Eligible Participant NOT be liable for termination charges according to Section 8.4(a)?

According to the 2025 Crowne Plaza Franchise Disclosure Document, under Section 8.4(a) regarding termination charges, an Eligible Participant will not be liable for termination charges under two specific conditions. First, if the Eligible Participant terminates the agreement or an affected service or service component 'for cause' in accordance with the agreement. This implies that the termination is due to a breach or failure on the part of the other party (presumably AT&T in this context). Second, if AT&T terminates a service or service component for any reason other than 'for cause', the Eligible Participant will also not be liable for termination charges. This protects the franchisee from incurring penalties when the termination is not due to their own actions or failures.

This provision is important for prospective Crowne Plaza franchisees as it outlines the circumstances under which they can avoid incurring termination charges, which can potentially be significant. Understanding these conditions allows franchisees to make informed decisions about their contractual obligations and potential liabilities. It also provides a degree of protection if AT&T fails to uphold their end of the agreement or decides to terminate services for reasons not attributable to the franchisee's actions.

It is important for a prospective Crowne Plaza franchisee to carefully review the agreement to fully understand what constitutes 'cause' for termination, both on their part and on the part of AT&T. This understanding will be crucial in determining whether they might be liable for termination charges in various scenarios. Furthermore, franchisees should seek legal counsel to ensure they fully comprehend their rights and obligations under the agreement, particularly concerning termination clauses.