Does the Crowne Plaza franchise require franchisees to enter into a Coca-Cola Participation Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
cation services to Brand System licensees, such as AT&T and Verizon, in consideration for assistance, program support or other services SCH renders to the providers in connection with their sales to licensees. You do not have to use these providers.
Coca-Cola® Agreement:
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.
TCCC provides certain funding based on the volume of TCCC products sold in Brand System Hotels. Most of this funding is administered by a cross-functional Business Partnership Team with representatives from TCCC and SCH, who work to identify and execute opportunities to create value for TCCC and the Brand System. Some funding is received by SCH on behalf of the Brand System and utilized for the benefit of the Brand System and/or to promote the sale of TCCC beverages throughout the Brand System. In connection with such funding and as part of the Coca-Cola Beverage Program, Hotels are required to participate in various promotional programs and marketing activities as directed by SCH.
Source: Item 22 — Contracts (FDD pages 99–100)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, hotels located within the 50 United States (including the District of Columbia) are generally required to participate in the IHG | Coca-Cola® Beverage Program. As part of this program, franchisees must sign a Participation Agreement with The Coca-Cola Company, unless a waiver is granted. A waiver may be granted 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 Coca-Cola products, including Coca-Cola®, Diet Coke®, Sprite®, and Coke Zero Sugar™. If the hotel serves fountain beverages, these same Coca-Cola products must be included. Additionally, hotels are required to serve Simply® Orange, a Coca-Cola juice product. Unless an exception applies per the Participation Agreement, all non-alcoholic bottled/canned beverages (including waters), fountain beverages, and juices offered or sold by the hotel must be Coca-Cola products. Similarly, all beverages displayed and offered in coolers and vending machines must be Coca-Cola products, with limited exceptions for equipment owned by the hotel.
Furthermore, Crowne Plaza hotels may be required to sign a lease agreement with The Coca-Cola Company for equipment provided by them. The franchise agreement explicitly prohibits hotels from serving, offering, or displaying any products from PepsiCo. For meetings or events hosted by the hotel, all non-alcoholic beverages should be Coca-Cola products, unless the client specifically requires non-Coca-Cola beverages as a condition of booking the function, subject to restrictions in the Participation Agreement. 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.
IHG® has recently renegotiated the Master Services Agreement with Coca-Cola®, which lowers product costs for IHG® hotels by approximately 7% on average, secures access to equipment & unlimited service calls free of charge, and provides incremental marketing capacity for IHG revenue-driving campaigns and F&B initiatives. ALL applicable hotels are required to sign a NEW Coca-Cola Participation Agreement to receive the negotiated pricing & remain compliant with the existing brand standard.