Under the Crowne Plaza dispensing equipment lease, who is considered the 'Equipment Lessee'?

According to Crowne Plaza's 2025 Franchise Disclosure Document, the 'Equipment Lessee' under the dispensing equipment lease is defined as the PSH Owner of each Corporate Hotel. This means that the individual or entity that owns the specific Crowne Plaza hotel location is the party responsible for adhering to the terms and conditions outlined in the dispensing equipment lease agreement with the Coca-Cola Company. This designation clarifies who bears the obligations and responsibilities associated with the leased equipment.

This definition is important for prospective Crowne Plaza franchisees because it establishes that the onus of managing and maintaining the dispensing equipment, as per the lease terms, falls directly on the hotel owner. This includes ensuring proper use of the equipment for dispensing Coca-Cola products, as well as complying with inspection and notification requirements. The franchisee, as the PSH Owner, must also be aware of the financial implications of the lease, such as rent payments and potential liquidated damages for breaches of the lease agreement.

Furthermore, the FDD specifies that the Equipment Lessee is responsible for complying with all applicable laws and regulations related to food safety, including the storage, preparation, and serving of food. They must also adhere to equipment manufacturers' specifications and product dispensing instructions. This underscores the importance of the franchisee's role in maintaining standards and ensuring compliance within their Crowne Plaza hotel.

In summary, the designation of the PSH Owner as the 'Equipment Lessee' in the Crowne Plaza franchise agreement clearly defines the responsibilities and obligations of the franchisee regarding the leased dispensing equipment. Prospective franchisees should carefully review the terms of the dispensing equipment lease to fully understand their duties and potential liabilities.