Who owns the Cold Drink Equipment provided to Crowne Plaza hotels by the Bottler?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Bottler will provide each Hotel the Cold Drink Equipment described above at no cost to Customer, except as prohibited by law, rule or regulation, in which case the rent charged will be the lowest legal rate available from the Bottler. All Cold Drink Equipment will be identified by Bottler Bottle/Can Beverage trademarks and will remain the property of Bottler. Except where prohibited by law, all Cold Drink Equipment will exclusively dispense Bottler Bottle/Can Beverages and no items of any kind other than Bottler Bottle/Can Beverages may be stored, displayed or sold in, on or through the Cold Drink Equipment. Use of the Cold Drink Equipment will be in accordance with each Bottler's standard Equipment Placement Terms, and Customer agrees to abide by such terms. To the extent that such standard placement terms are inconsistent with the terms of this Agreement, the terms of this Agreement will control. Bottler will have the right to relocate or remove some or all of the Cold Drink Equipment from a Hotel if Bottler determines the volume of Bottler Bottle/Can Beverages sold through such equipment justifies relocation or removal. Electrical installation costs and utilities for the Cold Drink Equipment will be at the expense of Customer. Customer represents and warrants that electrical service at the Hotels is proper and adequate for the installation of the Cold Drink Equipment, and Customer agrees to indemnify and hold harmless Company and Bottler from any damages arising out of defective electrical services at Hotels.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the Bottler retains ownership of the Cold Drink Equipment provided to the hotels. Specifically, the FDD states that all Cold Drink Equipment will be identified by Bottler Bottle/Can Beverage trademarks and will remain the property of the Bottler. This equipment is provided to each Crowne Plaza Hotel at no cost, unless prohibited by law, rule, or regulation. In such cases where a charge is legally mandated, the rent will be the lowest legal rate available from the Bottler.
This arrangement means that while Crowne Plaza franchisees benefit from having the equipment available for dispensing beverages, they do not own it. The Bottler has the right to relocate or remove the equipment if the volume of Bottler Bottle/Can Beverages sold through it justifies such action. This condition ensures that the equipment is used effectively to promote the Bottler's products. The franchisee is responsible for the electrical installation costs and utilities for the Cold Drink Equipment and must ensure that the electrical service is adequate for the equipment's installation.
This setup is fairly common in the franchise industry, particularly in food and beverage sectors, where suppliers often retain ownership of specialized equipment to maintain control over branding and product distribution. For a prospective Crowne Plaza franchisee, it is important to understand the Bottler's Equipment Placement Terms, as the use of the Cold Drink Equipment must comply with these terms. The franchisee should also be aware that the equipment is intended for the exclusive dispensing of Bottler Bottle/Can Beverages, with restrictions on storing or selling other items in or on the equipment.