Under what condition is a Crowne Plaza hotel permitted to serve Dr Pepper?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels in the State of Texas, subject to the Fair Share provisions described in Section 7 of this Exhibit A-1, may serve Dr Pepper®, but only on one valve per Dispenser per Hotel (the "Fountain Beverage Permitted Exception").
If Customer desires to serve Dr Pepper as set forth above in the Permitted Exception, an additional annual fair share lease charge of $300 for each one of those valves will be incurred. Charges will be invoiced to each Hotel. Any unpaid invoices by a Hotel will be handled in accordance with the Unpaid Invoice Procedure set forth above.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, a Crowne Plaza hotel is permitted to serve Dr Pepper under a specific condition. Hotels located in the State of Texas have the option to serve Dr Pepper. However, this is limited to only one valve per dispenser within the hotel. This exception is referred to as the "Fountain Beverage Permitted Exception."
If a Crowne Plaza franchisee in Texas chooses to serve Dr Pepper, they will incur an additional annual "fair share lease charge" of $300 for each valve dedicated to Dr Pepper. This charge is invoiced to the hotel. Failure to pay these invoices will be handled according to the Unpaid Invoice Procedure, potentially impacting the hotel's ability to receive further beverage supplies from the Coca-Cola Company.
This arrangement allows Crowne Plaza hotels in Texas to cater to local preferences by offering Dr Pepper while adhering to the overall beverage program requirements established by Coca-Cola. The additional charge ensures that the franchisee contributes to the program costs associated with offering a non-core beverage option. Prospective franchisees should consider this cost when evaluating their beverage offerings and pricing strategies.