What promotional activity participation is required of Atwell Suites franchisees to qualify for the pricing and funding set forth in the agreement, starting in 2021?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
To qualify for the pricing and funding set forth above, Customer must comply with the following performance criteria and all other material obligations applicable to Customer under this Agreement:
- i. Beginning in calendar year 2021, participate in a minimum of one (1) mutually agreed upon promotional activity each Year to promote the sale of Bottler Bottle/Can Beverages at the Hotels. Customer agrees not to unreasonably withhold its consent to Company's and Bottler's proposed promotional activities. Customer will use commercially reasonable efforts to conduce a promotion in Year One as well, but the parties acknowledge such a promotion may not be commercially reasonable.
- ii. Customer and Bottler will mutually agree upon the number, types, and locations of Cold Drink Equipment that are generally reasonably required for the exclusive display of Bottler Bottle/Can Beverages in each applicable Hotel, depending upon the size and the brand of the hotel. Cold Drink Equipment, if provided, will be placed in mutually agreed to high traffic locations, as defined by agreement of the parties. The specific location of such equipment will be subject to the agreement of Bottler and Customer.
- iii. Customer may also authorize the placement of (or maintain, if already in place) a mutually agreed upon number of Venders in any or all Hotels, depending upon the size and the brand of the hotel. The specific location of such equipment will be subject to the agreement of Bottler and Customer. All Venders placed at the Hotels may be operated on a full-service basis and serviced and stocked exclusively by Bottler in accordance with Bottler's standard full-service vending program for similarly-situated locations under similar competitive conditions in the applicable geographic area, or Venders may be serviced and stocked by a third party approved by Bottler, subject to the provisions of this Agreement.
- iv. Abide by any standard system minimum delivery size requirements established by Bottler.
- v. Perform those additional Bottler Bottle/Can Beverage marketing activities the parties mutually agreed upon.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, to qualify for specific pricing and funding, franchisees must meet certain performance criteria. Starting in 2021, Atwell Suites franchisees are required to participate in a minimum of one mutually agreed-upon promotional activity each year. This activity is intended to promote the sale of Bottler Bottle/Can Beverages at the hotels.
The agreement emphasizes that Atwell Suites franchisees should not unreasonably withhold consent to promotional activities proposed by the company and the bottler. While franchisees are expected to make commercially reasonable efforts to conduct a promotion in the first year, the document acknowledges that such a promotion may not always be feasible.
In addition to promotional activities, the agreement outlines other criteria, including mutually agreeing on the number, types, and locations of cold drink equipment for displaying Bottler Bottle/Can Beverages. Franchisees may also authorize the placement of vending machines, which can be operated and stocked exclusively by the bottler or a third party approved by the bottler. Franchisees must also adhere to any standard system minimum delivery size requirements established by the bottler and perform any additional Bottler Bottle/Can Beverage marketing activities that are mutually agreed upon.