What is the exception to the Even Hotels agreement regarding third-party tenants serving Competitive Beverages?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the agreement acknowledges that third-party tenants, unaffiliated with the Customer (likely referring to Coca-Cola in this context), may rent or lease space at an Even Hotels location. These tenants might elect to serve Competitive Beverages (i.e., non-Coca-Cola products) or be obligated to do so due to existing agreements with other beverage suppliers.
In such cases, the leased areas of these third-party tenants are excluded from the Even Hotels franchise agreement. This means it is not considered a breach of the agreement if these tenants serve or make available Competitive Beverages within their leased spaces. However, there are specific conditions attached to this exception.
The Competitive Beverages must be sold or available only within the tenant's leased space. Additionally, any advertisements for these beverages at the hotel must be reasonable, minimal, and ideally confined to the tenant's space. These advertisements should not suggest any association between the Competitive Beverages and Even Hotels or the Customer (Coca-Cola). This exception allows Even Hotels to accommodate existing tenant agreements while still prioritizing their beverage agreement.