To qualify for specific pricing and funding, what promotional activity participation is required of Crowne Plaza franchisees beginning in 2021?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
To qualify for the pricing and funding set forth above, Customer must comply with the following performance criteria and all other material obligations applicable to Customer under this Agreement:
- i. Beginning in calendar year 2021, participate in a minimum of one (1) mutually agreed upon promotional activity each Year to promote the sale of Bottler Bottle/Can Beverages at the Hotels. Customer agrees not to unreasonably withhold its consent to Company's and Bottler's proposed promotional activities. Customer will use commercially reasonable efforts to conduce a promotion in Year One as well, but the parties acknowledge such a promotion may not be commercially reasonable.
- ii. Customer and Bottler will mutually agree upon the number, types, and locations of Cold Drink Equipment that are generally reasonably required for the exclusive display of Bottler Bottle/Can Beverages in each applicable Hotel, depending upon the size and the brand of the hotel. Cold Drink Equipment, if provided, will be placed in mutually agreed to high traffic locations, as defined by agreement of the parties. The specific location of such equipment will be subject to the agreement of Bottler and Customer.
- iii. Customer may also authorize the placement of (or maintain, if already in place) a mutually agreed upon number of Venders in any or all Hotels, depending upon the size and the brand of the hotel. The specific location of such equipment will be subject to the agreement of Bottler and Customer. All Venders placed at the Hotels may be operated on a full-service basis and serviced and stocked exclusively by Bottler in accordance with Bottler's standard full-service vending program for similarly-situated locations under similar competitive conditions in the applicable geographic area, or Venders may be serviced and stocked by a third party approved by Bottler, subject to the provisions of this Agreement.
- iv. Abide by any standard system minimum delivery size requirements established by Bottler.
- v. Perform those additional Bottler Bottle/Can Beverage marketing activities the parties mutually agreed upon.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, to qualify for specific pricing and funding, franchisees must participate in promotional activities. Beginning in 2021, Crowne Plaza franchisees must participate in at least one mutually agreed-upon promotional activity each year. This activity is intended to promote the sale of Bottler Bottle/Can Beverages at the hotels.
The agreement emphasizes mutual consent, requiring that the franchisee not unreasonably withhold consent from the proposed promotional activities put forth by the Company and Bottler. While participation is expected to be commercially reasonable, the document acknowledges that conducting a promotion in the first year may not always be feasible.
In addition to promotional activities, the agreement covers the placement and management of Cold Drink Equipment and Venders within the hotels. The number, types, and locations of Cold Drink Equipment for displaying Bottler Bottle/Can Beverages are to be mutually agreed upon, ensuring they are placed in high-traffic areas. Similarly, the placement of Venders is subject to mutual agreement, with the Bottler having the option to service and stock the Venders or approve a third party for this purpose. Franchisees must also adhere to any standard system minimum delivery size requirements established by Bottler and perform additional Bottler Bottle/Can Beverage marketing activities as mutually agreed upon.