What is the condition regarding advertisements for Competitive Beverages served by third-party tenants at a Crowne Plaza hotel?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties acknowledge that there may be current or future third party tenants that are unaffiliated with Customer renting or leasing space at any Hotel and that elect to serve Competitive Beverages or are required to do so due to a binding agreement with a Competitive Beverage supplier (or another third party that has the authority to determine Beverage selection at such tenant's area).
Such tenants' leased areas shall be excluded from the scope of this Agreement.
Therefore, it shall not constitute a breach of this Agreement for such tenant(s) to serve or make available Competitive Beverages; provided, however, that: (i) such Competitive Beverages are sold or made available only within such tenant's leased space, (ii) any advertisements for such Competitive Beverages at the relevant Hotel will be reasonable under the circumstances and generally de minimis in nature (preferably, only within such tenant's leased space) and will not suggest that such Competitive Beverages are associated in any manner with Customer or the Hotel.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, there are specific conditions regarding advertisements for Competitive Beverages served by third-party tenants within a Crowne Plaza hotel. The agreement acknowledges that third-party tenants, unaffiliated with the Customer (Franchisee), may rent or lease space at the hotel and may elect to serve Competitive Beverages, potentially due to existing agreements with other beverage suppliers.
However, the FDD stipulates that it is not a breach of the agreement for these tenants to serve Competitive Beverages under certain conditions. First, these beverages must be sold or made available only within the tenant's leased space. Second, any advertisements for these Competitive Beverages at the hotel must be reasonable and generally de minimis in nature, preferably confined to the tenant's leased space.
Most importantly, these advertisements must not suggest any association between the Competitive Beverages and the Customer (Franchisee) or the Crowne Plaza hotel itself. This condition aims to protect the Crowne Plaza brand's association with its preferred beverage providers while allowing third-party tenants to operate with some autonomy within their leased areas.