Under what circumstances does the Atwell Suites Hotel Participation Agreement only apply to Bottler Bottle/Can Beverages?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to those provisions relating to Bottler Bottle/Can Beverages, this Agreement will only apply to each Hotel that is located in the geographic territory in which a given Bottler is authorized to distribute, promote, market, and sell Bottler Bottle/Can Beverages. Subject to the further provisions of this Agreement, if any Hotel is eligible for an alternate marketing or funding program offered directly or indirectly by Company or any of its subsidiaries or Authorized Bottlers, Company in its sole discretion will determine which marketing or funding program will be made available to that Hotel. In no event will any Hotel be eligible for more than one marketing or funding program offered by Company, or any of its subsidiaries or Authorized Bottlers. Customer agrees to provide Company with written notice of the opening, acquisition, change in ownership, termination of license agreement, or closing of any Hotel as promptly as is consistent with Customer's business processes.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the Hotel Participation Agreement applies to Bottler Bottle/Can Beverages when the Atwell Suites hotel is located within the geographic territory where a specific bottler is authorized to distribute, promote, market, and sell these beverages. This means that the agreement's terms regarding these beverages are only relevant if a local bottler has the rights to supply them to that particular hotel's location.
This condition ensures that the agreement aligns with the existing distribution agreements between The Coca-Cola Company and its authorized bottlers. It prevents conflicts that could arise if the agreement were to override established territorial rights. For a prospective Atwell Suites franchisee, this means understanding the local beverage distribution landscape is crucial. They need to be aware of which bottlers are authorized to operate in their hotel's area to fully understand their obligations and opportunities under the Hotel Participation Agreement.
Furthermore, the Atwell Suites FDD specifies that the Company retains the discretion to determine which marketing or funding program will be available to a Hotel if it qualifies for multiple programs. However, the FDD states that in no event will any Hotel be eligible for more than one marketing or funding program offered by Company, or any of its subsidiaries or Authorized Bottlers. The franchisee must also notify the company of any opening, acquisition, change in ownership, termination of license agreement, or closing of any Hotel.