Is Customer permitted to depict, advertise, promote or merchandise any Competitive Beverages anywhere in or in association with the Crowne Plaza Hotels?

According to the 2025 Crowne Plaza FDD, the agreement specifies that the franchisee, referred to as "Customer," is generally prohibited from depicting, advertising, promoting, or merchandising any Competitive Beverages anywhere in or in association with the Crowne Plaza Hotels. This restriction is in place to protect the exclusive rights granted to the beverage company for advertising, marketing, and promoting their beverages at the hotels. The franchisee is also restricted from entering into agreements that associate Competitive Beverages with Crowne Plaza, the hotels, or any of Crowne Plaza's trademarks in any advertising or promotional activities. This clause ensures that the Crowne Plaza brand remains closely tied to the beverage company's products.

However, there are some exceptions to this rule. For example, hotels in Texas may serve Dr Pepper on one valve per dispenser, subject to certain fair share provisions. Additionally, hotels may serve specific Competitive Beverages in Bottle/Can form, including Pellegrino bottled water, Fred brand bottled water at Kimpton hotels only, bottled water sold in a glass bottle (provided it is not a Product of PepsiCo), water offered to hotel guests on a complimentary basis (provided such water is not a Product of PepsiCo), and up to 10% of the space allocated to Bottle/Can Beverages in Customer-owned Beverage coolers or displays may feature Competitive Beverages, provided that such brands meet specific criteria. These exceptions provide some flexibility for franchisees to cater to local preferences or specific hotel brand standards while generally adhering to the agreement's intent.

These restrictions and exceptions are important for prospective franchisees to understand, as they directly impact beverage offerings and marketing strategies at Crowne Plaza hotels. Franchisees need to be aware of the limitations on promoting competitive beverages and the specific allowances for certain products or situations. Understanding these terms is crucial for maintaining compliance with the franchise agreement and avoiding potential conflicts with the franchisor or the beverage company. Franchisees should carefully review the agreement and any related exhibits to fully grasp the scope of these beverage-related obligations and opportunities.