For Crowne Plaza, what is the condition for receiving Owner Incentive Funding for Bottler Bottle/Can Beverages?
Crowne_Plaza 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 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, to qualify for pricing and funding for Bottler Bottle/Can Beverages, franchisees must meet specific performance criteria and fulfill all material obligations outlined in their agreement. These conditions include participating in at least one mutually agreed-upon promotional activity each year to boost Bottler Bottle/Can Beverage sales at the hotels, starting in 2021. While there's an expectation to conduct a promotion in the first year, it's acknowledged that it may not always be commercially reasonable.
Additionally, the franchisee and Bottler must agree on the number, types, and locations of Cold Drink Equipment needed for the exclusive display of Bottler Bottle/Can Beverages in each hotel, considering the hotel's size and brand. This equipment, if provided, should be placed in high-traffic areas as mutually determined by both parties. Franchisees may also authorize the placement (or maintain existing) a mutually agreed-upon number of vending machines in the hotels, depending on the hotel's size and brand. These vending machines can be operated on a full-service basis, stocked exclusively by the Bottler, or by a third party approved by the Bottler, adhering to the agreement's provisions.
Further conditions include abiding by any standard system minimum delivery size requirements established by the Bottler and performing additional Bottler Bottle/Can Beverage marketing activities as mutually agreed upon. These criteria ensure that Crowne Plaza franchisees actively promote and support the sale of Bottler Bottle/Can Beverages to qualify for the specified pricing and funding incentives.