For Even Hotels, who bears the incremental costs of redistribution necessary to deliver Simply Juice to distribution centers, and what is the estimated cost per Physical Case?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
mpany 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 MM
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the company bears the incremental costs of redistributing Simply Juice to distribution centers. The estimated cost for this redistribution is $2.60 per Physical Case throughout the term of the agreement. This means that while the price of Simply Juice is quoted "FOB Distributor," Even Hotels, not the franchisee, is responsible for covering the additional expenses to get the product to the distribution centers that supply the hotels.
For a prospective Even Hotels franchisee, this is a favorable arrangement. It clarifies that the franchisee will not be burdened with unexpected or fluctuating redistribution costs for Simply Juice. This fixed cost coverage by Even Hotels allows for more predictable budgeting and potentially higher profit margins on juice sales, as the franchisee only pays the initial quoted price "FOB Distributor" without additional redistribution fees.
It's important for franchisees to understand that this arrangement applies specifically to the incremental costs of redistribution for Simply Juice. Other beverages or products might have different pricing and distribution terms. Franchisees should also confirm that this arrangement is consistently applied and documented in their franchise agreement to avoid any future disputes regarding distribution costs.