Under what condition will Atwell Suites place dispensers in new or acquired hotels during the term?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Where permitted by law, Company will lease to Customer without any additional charge during the Term the Dispensers owned by Company as follows: (i) for Hotels existing as of the Agreement Effective Date, the Dispensers that are currently installed, without extending the equipment lease term length of any such currently installed Dispensers, and (ii) for each Hotel that becomes a Hotel during the Term, the Dispensers reasonably necessary to enable such Hotel to dispense a quality Fountain Beverage. With respect to new and/or acquired hotels that become Hotels during the Term, unless otherwise mutually agreed upon by the parties, Dispensers will be placed in such new or acquired Hotel only if such Hotel is forecast to purchase a minimum of 400 gallons of Company's Fountain Syrups per Year. Customer will use commercially reasonable efforts to assist in the conversion of any Hotels purchasing less than 400 gallons of Company's Fountain Syrups per Year to a Bottle/Can Program as described in Exhibit A-3. No ice makers or water filters will be provided to any Hotel under this Agreement. Equipment innovations that require a separate agreement (such as Coca-Cola Freestyle) will also not be provided without a separate agreement. No Hotel will alter or add to any Dispenser provided by Company without Company's prior written consent.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, for new or acquired hotels that become Atwell Suites hotels during the term of the agreement, Atwell Suites will place beverage dispensers in the hotel only if the hotel is forecast to purchase a minimum of 400 gallons of Atwell Suites' fountain syrups per year. This is unless Atwell Suites and the franchisee mutually agree otherwise.
This condition is significant for prospective franchisees because it sets a clear performance benchmark for fountain beverage sales. If a new or acquired Atwell Suites hotel is not projected to meet this minimum purchase volume, the franchisee will need to negotiate an alternative arrangement with Atwell Suites or consider implementing a bottle/can program as described in Exhibit A-3.
The FDD also mentions that no ice makers or water filters will be provided under the agreement, and equipment innovations like Coca-Cola Freestyle require a separate agreement. Additionally, franchisees cannot alter or add to any dispenser provided by Atwell Suites without prior written consent from the company. These stipulations ensure brand consistency and quality control across all Atwell Suites locations.