Under the Crowne Plaza Participation Agreement, what state's laws govern the construction of the agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
or requiring a general release, in exchange for any assistance related to a declared state or federal emergency.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
| Date: | | | |--------------------------------------------------------------|------------------------------------------------------------------------------|--| | Licensee: | | | | «EntityAllCaps» | By: «AuthorizedSignee» «SigneesTitle» | | | IHG: | | | | HOLIDAY HOSPITALITY FRANCHISING, LLC | | | | By: Six Continents Hotels, Inc., | | | | its sole managing member | By: Jenny Tidwell Vice President Franchise Licensing and Compliance | | California Amendment
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To Section 482E-3 of Hawaii Revised Statutes
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provision shall supersede and apply to each License for an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Hawaii:
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- Section 13.I of the License is amended to include the following: "The general release language contained in the License shall not relieve IHG or any other person, directly or indirectly, from liability imposed by the laws concerning franchising in the State of Hawaii."
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- In accordance with the provision under the U.S. Bankruptcy Code (11 U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be amended to include the following language: "Enforceability of this provision is a matter governed by the U.S. Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the governing state law depends on the franchisee's location. Generally, the Crowne Plaza license agreement requires application of Georgia law. However, several amendments specify that local state laws will supersede the agreement in certain states.
For example, for Crowne Plaza franchises issued in California, the FDD states that the provision in the License and Guaranty requiring application of Georgia laws "may not be enforceable under California law." Similarly, for franchises in North Dakota, the FDD indicates that "the laws of the State of North Dakota supersede any provisions of the License, or Georgia law, if such provisions are in conflict with such North Dakota laws." In Rhode Island, "Any provision in the License which designates the governing law as that of any state other than the State of Rhode Island is deleted from Licenses issued in the State of Rhode Island."
For franchisees considering a Crowne Plaza franchise, it's essential to understand how these state-specific amendments impact the interpretation and enforcement of their franchise agreement. Prospective franchisees should consult with a legal professional to fully understand their rights and obligations under both the standard agreement and any applicable state amendments.