Does the Crowne Plaza franchise require a 'Coca-Cola Participation Agreement' as part of its ancillary agreements?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to the Standards, Hotels located within the 50 United States (including the District of Columbia) are currently required to participate in the IHG | Coca-Cola® Beverage Program (the "Beverage Program"). You must sign a Participation Agreement with The Coca-Cola Company ("TCCC"), a copy of which is attached as Exhibit G-3 to this disclosure document, unless a waiver is granted by Holiday. Waivers may be granted by Holiday if your Hotel has a pre-existing beverage agreement with another supplier. Under the Beverage Program, participating Hotels are subject to the standards and requirements summarized below.
All participating Hotels are required to make available to guests a core set of TCCC bottled/canned beverages (subject to availability) that consists of Coca-Cola®, Diet Coke®, Sprite® and Coke Zero Sugar™. Hotels that serve fountain beverages are required to include Coca-Cola®, Diet Coke®, Sprite® and Coke Zero Sugar™. In addition, Hotels are required to serve Simply® Orange (a TCCC juice product). All non-alcoholic bottled/canned beverages (including waters), fountain beverages, and juices offered, served, or sold by your Hotel must be TCCC beverages, unless a permitted exception in your Hotel's Participation Agreement applies. All beverages displayed and offered in coolers and vending machines must be TCCC products, with limited exceptions for equipment owned by the Hotel.
You may also be required to sign a lease agreement with TCCC for TCCC-provided equipment; a copy of which is included as part of Exhibit G-3 to this disclosure document. Hotels may not serve, offer, or display any products of PepsiCo.
All non-alcoholic beverages served at meetings or events hosted by your Hotel should be TCCC products, unless serving non-TCCC beverages was required by the client as a condition of booking the function. In such circumstances, serving competitive beverages is permitted; provided, that certain restrictions set forth in your Participation Agreement are followed. Third-party restaurant or bar outlets operating at the Hotel are not required to follow the Beverage Program but may do so at their discretion.
Source: Item 22 — Contracts (FDD pages 99–100)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, hotels located within the 50 United States, including the District of Columbia, are generally required to participate in the IHG | Coca-Cola® Beverage Program. This necessitates signing a Participation Agreement with The Coca-Cola Company (TCCC), which is included as an exhibit in the disclosure document. However, a waiver may be granted by Holiday if the hotel already has a pre-existing beverage agreement with another supplier.
Under the Beverage Program, Crowne Plaza hotels must offer guests a core set of TCCC bottled/canned beverages, including Coca-Cola®, Diet Coke®, Sprite®, and Coke Zero Sugar™. For hotels with fountain service, these same Coca-Cola products must be included. Additionally, Simply® Orange (a TCCC juice product) is mandatory. Unless an exception is permitted in the hotel's Participation Agreement, all non-alcoholic bottled/canned beverages, fountain beverages, and juices must be TCCC products. Coolers and vending machines must also primarily stock TCCC products, with limited exceptions for hotel-owned equipment.
Furthermore, Crowne Plaza franchisees may be required to enter into a lease agreement with TCCC for TCCC-provided equipment. The FDD explicitly states that hotels cannot serve, offer, or display any PepsiCo products. For meetings or events hosted by the hotel, all non-alcoholic beverages should be TCCC products, unless the client specifically requires non-TCCC beverages as a condition of booking the function, subject to certain restrictions in the Participation Agreement. It is important to note that third-party restaurants or bars operating within the hotel are not mandated to follow the Beverage Program but can choose to do so at their discretion.
Crowne Plaza also receives funding from TCCC based on the volume of TCCC products sold in Brand System Hotels. This funding is managed by a Business Partnership Team consisting of representatives from TCCC and SCH, who collaborate to identify and implement opportunities that benefit both TCCC and the Brand System. SCH receives some of this funding on behalf of the Brand System, which is then used to benefit the Brand System and promote the sale of TCCC beverages throughout the Brand System. As part of the Coca-Cola Beverage Program, hotels are required to participate in various promotional programs and marketing activities as directed by SCH.