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Under what circumstances does the Crowne Plaza Hotel Participation Agreement only apply to Bottler Bottle/Can Beverages?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

With respect to those provisions relating to Bottler Bottle/Can Beverages, this Agreement will only apply to each Hotel that is located in the geographic territory in which a given Bottler is authorized to distribute, promote, market, and sell Bottler Bottle/Can Beverages.

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to the 2025 Crowne Plaza Franchise Disclosure Document, the Hotel Participation Agreement, concerning provisions related to Bottler Bottle/Can Beverages, applies only to hotels located within the geographic territory where a specific bottler is authorized to distribute, promote, market, and sell these beverages. This means that the agreement's stipulations regarding the purchase and sale of Coca-Cola products in bottle or can form are only binding on Crowne Plaza hotels that are within the distribution area of a Coca-Cola bottler licensed to operate in that region.

This condition ensures that the agreement is relevant and enforceable, as it aligns the obligations of the hotel with the logistical realities of beverage distribution. A Crowne Plaza hotel outside of a bottler's territory would not be subject to the agreement's requirements regarding Bottler Bottle/Can Beverages, as it would not be feasible for them to comply. This also allows Coca-Cola to tailor its marketing and funding programs to specific geographic areas, optimizing their effectiveness.

For a prospective Crowne Plaza franchisee, this means that the specifics of their Hotel Participation Agreement will depend on their hotel's location and the local Coca-Cola bottler's distribution rights. It is important for franchisees to understand the geographic scope of their agreement to ensure compliance and to take full advantage of any marketing or funding programs offered by Coca-Cola within their territory. The franchisee should confirm with Crowne Plaza and Coca-Cola the exact boundaries of the relevant bottler's territory to avoid any misunderstandings.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.