Does the Even Hotels agreement specify whether the company's bottlers are considered affiliates of the company?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Bottlers" means authorized bottlers of Company that elect to participate under this Agreement.
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- "Bottler Bottle/Can Beverage" means a Bottle/Can Beverage that is marketed under trademarks owned or controlled by or licensed for use to Company and purchased by Customer directly from Company or Bottler, for sale at the Hotels or sold through full service vending machines owned, stocked or serviced exclusively by Company or Bottler.
For the avoidance of doubt, "Bottler Bottle/Can Beverages include (i) Monster, NOS and Full Throttle brand Bottle/Can Beverages purchased directly from a Bottler; and (ii) Bottle/Can Beverages purchased directly from a Bottler that has the rights to distribute Beverages that are marketed under trademarks owned by, licensed to, controlled by or distributed by Dr Pepper Snapple Group, Inc. ("DPSG") or any of its subsidiaries, affiliates or bottlers, or any entity or joint venture in which DPSG or any of its subsidiaries, affiliates or bottlers, has at least a 50% ownership interest.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
The 2025 Even Hotels Franchise Disclosure Document does not explicitly state whether the company's bottlers are considered affiliates. However, the document does define "Bottlers" as authorized bottlers of The Coca-Cola Company who elect to participate under the agreement. The agreement also specifies that Even Hotels franchisees ("Customers") must purchase certain beverages directly from The Coca-Cola Company or its Bottlers.
Furthermore, the document states that "Bottler Bottle/Can Beverages include (i) Monster, NOS and Full Throttle brand Bottle/Can Beverages purchased directly from a Bottler; and (ii) Bottle/Can Beverages purchased directly from a Bottler that has the rights to distribute Beverages that are marketed under trademarks owned by, licensed to, controlled by or distributed by Dr Pepper Snapple Group, Inc. ("DPSG") or any of its subsidiaries, affiliates or bottlers, or any entity or joint venture in which DPSG or any of its subsidiaries, affiliates or bottlers, has at least a 50% ownership interest."
While the FDD does not directly address the affiliate status of bottlers, it does outline the relationship between Even Hotels, The Coca-Cola Company, and the authorized bottlers. A prospective franchisee should seek clarification from Even Hotels regarding the specific legal and business relationship between The Coca-Cola Company and its bottlers to fully understand any potential implications for the franchise agreement.