For Atwell Suites, who bears the incremental costs of redistribution necessary to deliver Simply Juice to distribution centers, and what is the estimated cost per Physical Case?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
es a Product of PepsiCo at a later date, that Competitive Beverage will no longer be deemed a Juice Permitted Exception.
2. PRICING
Company agrees that during the Term, Customer will have the right to purchase Juice from Company at Company's thencurrent published chain account prices, which prices are subject to change from time to time. Further, for Minute Maid Frozen Concentrate Juice (a/k/a "Frozen Dispensed") (
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the company bears the incremental costs of redistributing Simply Juice to distribution centers. This means that Atwell Suites, not the franchisee, is responsible for covering these additional expenses. The estimated cost for this redistribution is $2.60 per Physical Case throughout the term of the agreement.
This arrangement benefits the franchisee by reducing their direct costs associated with obtaining Simply Juice. Instead of the franchisee having to pay extra for the juice to be delivered to distribution centers, Atwell Suites absorbs this cost. This can make budgeting and managing expenses more predictable for the franchisee.
It is important for prospective Atwell Suites franchisees to understand that while the company covers the redistribution costs, the base price of Simply Juice is quoted "FOB Distributor," which means the franchisee is responsible for the cost of transporting the juice from the distribution center to their hotel. Franchisees should factor in these transportation costs when evaluating the overall profitability of offering Simply Juice at their Atwell Suites location.