factual

What is the purpose of IHG's renegotiated Master Services Agreement with Coca-Cola® for Atwell Suites franchisees?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

In a continued effort to provide a best-in-class beverage program for guest and owners, IHG® has recently renegotiated the Master Services Agreement with Coca-Cola®:

Agreement Highlights:

  • Lowers product costs for IHG® hotels by approximately 7% on average
  • Secures access to equipment & unlimited service calls free of charge
  • Provides incremental marketing capacity for IHG revenue-driving campaigns and F&B initiatives
  • ALL applicable hotels are required to sign a NEW Coca-Cola Participation Agreement to receive the negotiated pricing & remain compliant with the existing brand standard (ID 55838).

NOTE: If your hotel has recently opened, you may have signed a previous agreement. Signing the December 2020 agreement IS REQUIRED.

Source: Item 23 — Receipts (FDD pages 99–486)

What This Means (2025 FDD)

According to the 2025 FDD, IHG (InterContinental Hotels Group) has renegotiated its Master Services Agreement with Coca-Cola to provide benefits to Atwell Suites franchisees. The primary goals of this renegotiation are to lower product costs, secure equipment access, ensure unlimited service calls without charge, and provide incremental marketing capacity for IHG revenue-driving campaigns and F&B initiatives.

Specifically, the renegotiated agreement aims to lower product costs for IHG hotels by approximately 7% on average. It also secures access to equipment and unlimited service calls free of charge, which can significantly reduce operational expenses for franchisees. Additionally, the agreement provides incremental marketing capacity for IHG revenue-driving campaigns and food and beverage initiatives, potentially boosting revenue for Atwell Suites hotels.

To benefit from these negotiated terms and remain compliant with brand standards, all applicable Atwell Suites hotels are required to sign a new Coca-Cola Participation Agreement. This requirement ensures that each hotel formally agrees to the terms and conditions set forth in the renegotiated agreement. The FDD also notes that even if a hotel has recently opened and signed a previous agreement, signing the December 2020 agreement is still required to receive the negotiated pricing.

For Atwell Suites franchisees, this renegotiated agreement offers potential cost savings, improved service, and enhanced marketing support. Franchisees should ensure they sign the new Coca-Cola Participation Agreement to take full advantage of these benefits and maintain compliance with brand standards. Any questions regarding the agreement can be directed to IHG Merlin or via email to CokeContracts@ihg.com.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.