Does Atwell Suites guarantee a fixed price for juice purchases during the term of the agreement?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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") ("MMFD"), Company agrees to provide certain deviated pricing, as set forth below.
For MMFD, the amount of deviation from list price is shown below and will be applied on each Physical Case of MMFD that each Hotel purchases. List price deviation will be available to Hotels only for purchases of MMFD from an Authorized Distributor of Company's Juices. Deviation will be deducted from the MMFD invoices. List prices as of the date of this Agreement are as noted below and may fluctuate.
For Simply Juice, the current pricing for 6/52 oz. PET (bottled) packaging is $24.15 per Physical Case. Simply Juice price is quoted "FOB Distributor." Nothwithstanding that Simply Juice is quoted "FOB Distributor", Company acknowledges and agrees that it shall bear the incremental costs of redistribution necessary to deliver the product to distribution centers; estimated to be $2.60 per Physical Case throughout the term.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the price for juice is not guaranteed to remain fixed during the term of the agreement. Atwell Suites's company agrees that the customer (franchisee) will have the right to purchase juice from the company at the company's current published chain account prices, but these prices are subject to change over time. This means that while franchisees can buy juice from Atwell Suites's company, the cost may fluctuate.
For Minute Maid Frozen Concentrate Juice (MMFD), Atwell Suites agrees to provide deviated pricing. This deviation from the list price will be applied to each physical case purchased from an authorized distributor of the company's juices and will be deducted from the invoices. However, the list prices, as of the date of the agreement, are noted and may fluctuate. For Simply Juice, the current pricing is $24.15 per physical case for 6/52 oz. PET (bottled) packaging, quoted as "FOB Distributor." Atwell Suites acknowledges it will bear the incremental costs of redistribution to deliver the product to distribution centers, estimated at $2.60 per physical case throughout the term.
This pricing structure means that franchisees need to be prepared for potential changes in juice costs, which can impact their overall expenses and profitability. While some deviations or cost considerations are specified, the core pricing is variable. Franchisees should factor in potential price fluctuations when budgeting and planning their purchasing strategies. It is common in the franchise industry for supply costs to vary, but understanding the specific terms and potential for change is crucial for financial management.