Does the Even Hotels agreement specify any exceptions to the prohibition against competitive advertising?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
Either Customer or the party booking the event or function will be responsible for all expenses in any way related to the service of Competitive Beverages, including the provision of equipment, if necessary.
Each Hotel shall use commercially reasonable efforts to minimize the incidence of Competitive Beverage services.
The parties acknowledge that there may be current or future third party tenants that are unaffiliated with Customer renting or leasing space at any Hotel and that elect to serve Competitive Beverages or are required to do so due to a binding agreement with a Competitive Beverage supplier (or another third party that has the authority to determine Beverage selection at such tenant's area).
Such tenants' leased areas shall be excluded from the scope of this Agreement.
Therefore, it shall not constitute a breach of this Agreement for such tenant(s) to serve or make available Competitive Beverages; provided, however, that: (i) such Competitive Beverages are sold or made available only within such tenant's leased space, (ii) any advertisements for such Competitive Beverages at the relevant Hotel will be reasonable under the circumstances and generally de minimis in nature (preferably, only within such tenant's leased space) and will not suggest that such Competitive Beverages are associated in any manner with Customer or the Hotel.
Notwithstanding anything in this Agreement to the contrary, if any practice in effect as of the Term Effective Date at any hotel that becomes a Hotel on or after the Term Effective Date is at variance with any practice proscribed by this Agreement (e.g., dispensing tap water out of a valve on a Dispenser), except if a Hotel is serving a Competitive Beverage, or any Competitive Beverage on a Company-owned Dispenser, such practice shall be grandfathered and permitted under this Agreement until such time as any associated equipment is replaced in accordance with this Agreement.
EXHIBIT G-4-1
NEXT-GEN PAYMENTS AGREEMENT
[Item 23: RECEIPTS]
Subject to applicable law and agreements to which Customer is subject, Customer will use commercially reasonable efforts to facilitate Company access to the Hotels to present new products for consideration.
1.2 Fairlife Milk
The Hotels may serve Company's Fairlife brand milk, and purchases of Fairlife will earn funding as set forth below.
1.3 Permitted Exceptions
Notwithstanding the foregoing, Hotels may serve the following Competitive Beverages that are Juice (the "Juice Beverage Permitted Exceptions"): (i) juice that is freshly-squeezed on the premises; (ii) Juice provided by Royal Cup at only those Hotels operated under the Holiday Inn Express tradename; and (iii) Competitive Juice Beverages that Company and Six Continents Hotels, Inc. mutually agree may be served in the Hotels. If any Juice Permitted Exception becomes a Product of PepsiCo at a later date, that Competitive Beverage will no longer be deemed a Juice Permitted Exception.
2. PRICING
Company agrees that during the Term, Customer will have the right to purchase Juice from Company at Company's thencurrent published chain account prices, which prices are subject to change from time to time. Further, for Minute Maid Frozen Concentrate Juice (a/k/a "Frozen Dispensed") ("MMFD"), Company agrees to provide certain deviated pricing, as set forth below.
2.1 MMFD List Price Deviation
For MMFD, the amount of deviation from list price is shown below and will be applied on each Physical Case of MMFD that each Hotel purchases. List price deviation will be available to Hotels only for purchases of MMFD from an Authorized Distributor of Company's Juices. Deviation will be deducted from the MMFD invoices. List prices as of the date of this Agreement are as noted below and may fluctuate.
[Item 23: RECEIPTS]
EXHIBIT A-3 BOTTLE/CAN PROGRAM TERMS AND CONDITIONS
1. AVAILABILITY
Each Hotel will make available a core brand set of Bottler Bottle/Can Beverages, subject to availability from Bottler, that consists of Coca-Cola®, Diet Coke®, Sprite® and Coke Zero™, and the remaining Bottler Bottle/Can Beverages will be selected by Customer, subject to Company's approval, which shall not be unreasonably withheld. All Bottle/Can Beverages served in the Hotels will be Bottler Bottle/Can Beverages, except for the Bottle/Can Beverage Permitted Exceptions defined below. Company and Bottler will use their commercially reasonable efforts to make a line of Bottler Bottle/Can Beverages that is as broad as possible (based on local market) available to each Hotel in order to allow Customer to fulfill its obligations under this Agreement. At a minimum, the Beverages listed in Section 3 below must be available to Hotels at the pricing made available under this Agreement.
Notwithstanding the foregoing, Hotels may serve the following Competitive Beverages in Bottle/Can Beverage form (the "Bottle Can/Beverage Permitted Exceptions"): (i) Pellegrino bottled water; (ii) Fred brand bottled water at Kimpton hotels only; (iii) bottled water sold in a glass bottle, provided it is not a Product of PepsiCo, (iv) water offered to hotel guests on a complimentary basis, provided such water is not a Product of PepsiCo; and (v) up to 10% of the space allocated to Bottle/Can Beverages in Customer-owned Beverage coolers or displays may feature Competitive Beverages, provided that such brands are (i) not Products of PepsiCo, (ii) are not Sparkling Beverages, and (iii) are not Juice Beverages, except for those Beverages that are local, niche brands for which Company does not provide a product offering and may contain juice as an ingredient. If any Bottle/Can Beverage Permitted Exception becomes a Product of PepsiCo at a later date, that Competitive Beverage will no longer be deemed a Bottle/Can Beverage Permitted Exception, unless that Customer has an agreement with such Competitive Beverage supplier, in which such Competitive Beverage will be considered a Permitted Exception until the expiration of such agreement. Customer acknowledges that all Bottle/Can Beverages displayed in Bottler-owned Cold Drink Equipment must be a Bottler Bottle/Can Beverages.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the agreement outlines specific exceptions to the prohibition against competitive advertising.
The agreement allows third-party tenants renting or leasing space at an Even Hotel, who are unaffiliated with the franchisee, to serve competitive beverages if they have a binding agreement with a competitive beverage supplier. However, these competitive beverages must be sold or made available only within the tenant's leased space. Any advertisements for these competitive beverages at the hotel must be reasonable and minimal, preferably confined to the tenant's leased space, and must not suggest any association with the Even Hotel itself.
Additionally, Even Hotels may serve certain competitive beverages that are juice, with some stipulations. These exceptions include juice that is freshly-squeezed on the premises, juice provided by Royal Cup at Holiday Inn Express locations, and competitive juice beverages that Even Hotels and Six Continents Hotels, Inc. mutually agree may be served. The agreement also specifies exceptions for certain bottle/can beverages, such as Pellegrino bottled water, Fred brand bottled water at Kimpton hotels, bottled water sold in a glass bottle (excluding PepsiCo products), complimentary water (excluding PepsiCo products), and up to 10% of space in franchisee-owned beverage coolers or displays for local, niche brands that are not PepsiCo products, sparkling beverages, or juice beverages (with some juice as an ingredient). These exceptions provide some flexibility for franchisees while still prioritizing the promotion of the primary beverage provider's products.