factual

What is the definition of a 'Competitive Beverage' in the Crowne Plaza franchise agreement?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. "Competitive Beverage" means any Beverage that is not a Company Beverage, and any Beverage marketed under Beverage trademarks that are not Company or Bottler trademarks.

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to Crowne Plaza's 2025 Franchise Disclosure Document, a Competitive Beverage is defined as any beverage that is not a Company Beverage, or any beverage marketed under trademarks that are not Company or Bottler trademarks. Company Beverages are those marketed under trademarks owned by The Coca-Cola Company or trademarks licensed by The Coca-Cola Company that are designated as a product of Company.

This definition is important for prospective Crowne Plaza franchisees because it dictates which beverages they are generally allowed to sell at their hotels. Franchisees are typically required to offer Company Beverages, meaning Coca-Cola products, and are restricted from offering beverages that compete with these products. This requirement helps ensure brand consistency across all Crowne Plaza locations and supports the relationship between Crowne Plaza and The Coca-Cola Company.

However, there are exceptions. Competitive Beverages may be served at individual events or functions at any Crowne Plaza hotel if the party booking the event requires it as a condition of booking. Additionally, hotels may serve certain Competitive Beverages in Bottle/Can form, such as 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), and water offered to hotel guests on a complimentary basis (provided such water is not a Product of PepsiCo). 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 are (i) not Products of PepsiCo, (ii) are not Sparkling Beverages, and (iii) are not Juice Beverages, except for those Beverages that are local, niche brands for which Company does not provide a product offering and may contain juice as an ingredient. These exceptions provide some flexibility for franchisees to cater to specific customer demands or offer local beverage options while still adhering to the overall beverage program requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.