Is using electronic signatures optional for executing the Crowne Plaza license agreement, and is it a condition of executing the license?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
This License may, at IHG's option, be executed via electronic signature. In such event, Licensee acknowledges that conducting this transaction using electronic means is optional and is not a condition to executing this License. By electronically signing this paragraph, Licensee agrees to conduct this transaction using electronic means, which includes the transmittal of electronic communications and the execution of the agreement using an electronic signature. Licensee further agrees that the parties' electronic signatures are valid and create a binding and enforceable agreement. If Licensee does not agree to conduct the transaction electronically and does not agree to execute the agreement using an electronic signature, Licensee must promptly notify IHG and IHG will provide Licensee with a non-electronic License.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the use of electronic signatures is optional and not a requirement for executing the license agreement. IHG, at its discretion, may allow the License to be executed via electronic signature. If IHG offers this option, the Licensee acknowledges that using electronic means is not mandatory. By electronically signing the provided paragraph, the Licensee agrees to conduct the transaction electronically, which includes transmitting electronic communications and using an electronic signature, further agreeing that the electronic signatures are valid and create a binding agreement.
If a prospective Crowne Plaza franchisee does not wish to proceed with the transaction electronically, they must promptly notify IHG. In such cases, IHG will provide the Licensee with a non-electronic License. This ensures that franchisees who are not comfortable with or do not have the means for electronic transactions are still able to proceed with the licensing agreement.
For franchisees in California, Hawaii, Rhode Island, and Virginia, amendments to the agreement state that signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals. This provides additional clarity and legal standing to electronic signatures within those states.