Does a Crowne Plaza hotel have the right to purchase Company Fountain Syrups from Company during the Term?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term, each Hotel will have the right to purchase Company Fountain Syrups from Company at Company's thencurrent published chain account prices, which prices are subject to change from time to time.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, each hotel has the right to purchase Company Fountain Syrups from the Company during the term of the agreement. The price for these syrups will be based on the Company's current published chain account prices, which are subject to change. All Fountain Beverages served in the Hotels must be Company Fountain Beverages, except for the Fountain Beverage Permitted Exception.
This arrangement ensures that Crowne Plaza hotels have a consistent supply of fountain syrups from a designated source, which helps maintain brand standards and quality control. However, franchisees should be aware that the prices are not fixed and can fluctuate, potentially impacting their cost of goods sold. The agreement also specifies that hotels must serve a core brand set of Company Fountain Beverages, including Coca-Cola®, Diet Coke®, Sprite® and Coke ZeroTM, with the remaining selections subject to Company approval.
A notable exception exists for hotels in Texas, which, subject to certain conditions, may serve Dr Pepper® on one valve per dispenser. This exception acknowledges regional preferences while still maintaining a focus on Company-approved beverages. Franchisees should carefully review the pricing terms and conditions, as well as any volume commitments or performance criteria, to fully understand their obligations and potential costs associated with the fountain beverage program.