What is considered a 'Competitive Beverage' in the Even Hotels FDD?

According to Even Hotels' 2025 Franchise Disclosure Document, a Competitive Beverage is defined as any beverage that is not a Company Beverage, or any beverage marketed under trademarks that are not owned by Company (The Coca-Cola Company) or its bottlers. This definition applies regardless of the beverage's labeling or marketing. For clarity, the definition of 'beverages' includes flavor enhancers, liquid water enhancers, brands and products of beverage-making systems like Soda Stream, and non-alcoholic beverages sold as shots or supplements. However, it specifically excludes fresh-brewed coffee, fresh-brewed tea products, hot chocolate or hot cocoa, and water.

For a prospective Even Hotels franchisee, this definition is important because it dictates which beverages they are generally restricted from serving at their hotel. Even Hotels franchisees are obligated to offer Coca-Cola products, and this clause prevents franchisees from offering competing products except under specific circumstances. This restriction is part of an agreement between Even Hotels and Coca-Cola, which provides certain benefits and pricing to the franchisee in exchange for primarily selling Coca-Cola products.

There are some exceptions to this rule. For example, Competitive Beverages may be served at individual events or functions at any Hotel if the party booking the event or function requires it as a condition of booking the event. In such cases, the Competitive Beverages must be confined to the event area, and advertising for them must be minimal and not suggest any association with Even Hotels. Additionally, Hotels may serve certain Competitive Beverages in Bottle/Can form, including Pellegrino bottled water, Fred brand bottled water at Kimpton hotels only, bottled water sold in a glass bottle (provided it is not a Product of PepsiCo), water offered to hotel guests on a complimentary basis (provided such water is not a Product of PepsiCo), and 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.

Understanding these restrictions and exceptions is crucial for Even Hotels franchisees to ensure compliance with their franchise agreement and to avoid potential penalties or disputes with the franchisor. Franchisees should carefully review the exhibits related to beverage programs to fully understand their obligations and permitted exceptions.