What is considered a 'Competitive Beverage' according to the Atwell Suites FDD?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
iCo in such Hotel.
Each Hotel may, but is not obligated to, serve in the Hotels Gold Peak**®** Fresh-Brewed Tea (and/or any other Tea brand that Company may make available). If Customer elects to serve Company's Tea, Customer agrees that in no event will Customer serve any Teas that are a Product of PepsiCo in its Hotels.
2. PRICING
Company agrees that during the Term, each Hotel will have the right to purchase Company Smoothies from Company at Company's then-current published chain account prices, which prices are subject to change from time to time.
Each Hotel will have the right to purchase Tea from Company at Company's then-current published chain account prices, which prices are subject to change from time to time.
3. EQUIPMENT PROGRAM
Customer is responsible for purchasing all Tea Dispensers and blending equipment for all applicable Hotels.
4. SERVICE PROGRAM
Any service on the Tea Dispensers or blending equipment will be at the cost and responsibility of Customer.
EXHIBIT B DEFINITIONS
Capitalized words or phrases used throughout this Agreement have the following meanings:
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- "Agreement" means this agreement and all exhibits, addenda and attachments hereto.
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- "Authorized Bottlers" means those bottlers with special authorization from Company to sell certain Company Sparkling to Customer.
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- "Authorized Distributors" means authorized distributors with special authorization from Company to sell certain Company Beverages to Customer.
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- "Beverage" means all non-alcoholic beverages (i.e. anything consumed by drinking), whether or not such beverages (i) contain nutritive, food, or dairy ingredients, or (ii) are in a frozen form. This definition applies without regard to the beverage's labeling or marketing. For the avoidance of doubt, "flavor enhancers", "liquid water enhancers", brands and products of Beverage making systems (e.g., Soda Stream®) and non-alcoholic beverages sold as "shots" or "supplements" are considered Beverages. However, this definition does not include fresh-brewed coffee, fresh-brewed tea products, hot chocolate or hot cocoa, or water. Nothing in this definition is intended to limit or expand what a Hotel must serve under the Availability section of any of Exhibits A-1 through and including A-3.
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- "Bottle/Can Beverage" means any Beverage, including a pre-mix Beverage, in pre-packaged, ready-to-drink form in bottles, cans or other factory-sealed containers.
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- "Bottlers" means authorized bottlers of Company that elect to participate under this Agreement.
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- "Bottler Bottle/Can Beverage" means a Bottle/Can Beverage that is marketed under trademarks owned or controlled by or licensed for use to Company and purchased by Customer directly from Company or Bottler, for sale at the Hotels or sold through full service vending machines owned, stocked or serviced exclusively by Company or Bottler. For the avoidance of doubt, "Bottler Bottle/Can Beverages include (i) Monster, NOS and Full Throttle brand Bottle/Can Beverages purchased directly from a Bottler; and (ii) Bottle/Can Beverages purchased directly from a Bottler that has the rights to distribute Beverages that are marketed under trademarks owned by, licensed to, controlled by or distributed by Dr Pepper Snapple Group, Inc. ("DPSG") or any of its subsidiaries, affiliates or bottlers, or any entity or joint venture in which DPSG or any of its subsidiaries, affiliates or bottlers, has at least a 50% ownership interest.
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- "Cold Drink Equipment" means Venders and Coolers.
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- "Company" means The Coca-Cola Company, acting by and through its Coca-Cola North America Group.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, a 'Beverage' is defined as any non-alcoholic drink, regardless of whether it contains nutritive, food, or dairy ingredients, or whether it is in frozen form. This definition applies irrespective of the beverage's labeling or marketing. The definition includes flavor enhancers, liquid water enhancers, brands and products of beverage making systems like Soda Stream, and non-alcoholic beverages sold as shots or supplements. However, it excludes fresh-brewed coffee, fresh-brewed tea products, hot chocolate or hot cocoa, and water.
'Bottle/Can Beverage' refers to any beverage, including a pre-mix beverage, that is pre-packaged and ready-to-drink in bottles, cans, or other factory-sealed containers. A 'Bottler Bottle/Can Beverage' is a Bottle/Can Beverage marketed under trademarks owned or controlled by or licensed for use to Company and purchased by Customer directly from Company or Bottler, for sale at the Hotels or sold through full service vending machines owned, stocked or serviced exclusively by Company or Bottler. These include Monster, NOS and Full Throttle brand Bottle/Can Beverages purchased directly from a Bottler, and Bottle/Can Beverages purchased directly from a Bottler that has the rights to distribute Beverages that are marketed under trademarks owned by, licensed to, controlled by or distributed by Dr Pepper Snapple Group, Inc. (DPSG) or any of its subsidiaries, affiliates or bottlers, or any entity or joint venture in which DPSG or any of its subsidiaries, affiliates or bottlers, has at least a 50% ownership interest.
Atwell Suites hotels have some exceptions regarding competitive beverages. Hotels may serve Pellegrino bottled water; Fred brand bottled water at Kimpton hotels only; bottled water sold in a glass bottle, provided it is not a Product of PepsiCo, water offered to hotel guests on a complimentary basis, provided such water is not a Product of PepsiCo; and up to 10% of the space allocated to Bottle/Can Beverages in Customer-owned Beverage coolers or displays may feature Competitive Beverages, provided that such brands are not Products of PepsiCo, are not Sparkling Beverages, and are not Juice Beverages, except for those Beverages that are local, niche brands for which Company does not provide a product offering and may contain juice as an ingredient. If any Bottle/Can Beverage Permitted Exception becomes a Product of PepsiCo at a later date, that Competitive Beverage will no longer be deemed a Bottle/Can Beverage Permitted Exception, unless that Customer has an agreement with such Competitive Beverage supplier, in which such Competitive Beverage will be considered a Permitted Exception until the expiration of such agreement.
For Atwell Suites franchisees, this means that while they are generally required to offer specific brands of beverages, there are some exceptions that allow for flexibility in offering competitive beverages under certain conditions. Franchisees need to be aware of these conditions and exceptions to ensure they comply with the franchise agreement and avoid potential breaches. They should also stay informed about any changes in product ownership (e.g., a brand becoming a PepsiCo product) that could affect their ability to offer certain beverages.