According to the agreement, can a customer resell Crowne Plaza beverages?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
RESALE AND PACKAGING.
Customer will (i) properly dispose of all packaging (ii) not resell Company Beverages or Company Beverage components or ingredients (including packaging) or Bottler Bottle/Can Beverages to third parties except for the purpose of environmentally safe disposal and (iii) not directly or indirectly ship, distribute or sell any Bottler Bottle/Can Beverages outside of (a) the geographic scope of the Company's internally defined market unit in which such Beverages were sold to Customer (Company will make the geographic scope of any such market unit available to Customer upon request) with respect to such Beverages sold by Company and (b) with respect to products sold by a Bottler, the geographic territory in which the Bottler is authorized to distribute, promote, market, and sell Company Bottle/Can Beverages and (iv) sell finished Fountain Beverage only in cups or glasses and not in closed containers that retain carbonation, or in bottles or cans.
Customer will reimburse Company and Bottler for all damages resulting from its failure to do so.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, customers are restricted from reselling Crowne Plaza beverages. Specifically, the agreement states that the franchisee (referred to as 'Customer') will not resell Company Beverages or Company Beverage components or ingredients (including packaging) or Bottler Bottle/Can Beverages to third parties except for the purpose of environmentally safe disposal.
This restriction ensures that Crowne Plaza maintains control over its brand and distribution channels. It prevents unauthorized parties from profiting from the resale of its beverages and protects the integrity of the products. The franchisee is also responsible for properly disposing of all packaging materials.
Furthermore, Crowne Plaza requires that finished Fountain Beverages are sold only in cups or glasses and not in closed containers that retain carbonation, or in bottles or cans. This stipulation likely aims to maintain the quality and presentation of the beverages as intended by the brand, preventing them from being sold in a manner that could compromise their taste or appearance. The franchisee is liable for any damages resulting from their failure to comply with these regulations.
These conditions are typical in franchise agreements within the food and beverage industry, where brand consistency and quality control are paramount. Prospective Crowne Plaza franchisees should understand these restrictions and ensure they have systems in place to comply with them to avoid potential penalties or breaches of the franchise agreement.