How does the Even Hotels FDD define 'Product of PepsiCo'?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
t any additional charge for all ordinary course mechanical repairs reasonably needed for Juice equipment provided by Company. Service in respect of Juice equipment will be on the terms and conditions set forth in Section 6.1 of Exhibit A-1 attached to this Agreement.
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.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
The 2025 Even Hotels Franchise Disclosure Document does not explicitly define "Product of PepsiCo." However, it is implied that it refers to beverages produced or distributed by PepsiCo, as the document outlines specific restrictions and conditions regarding the sale and service of PepsiCo products within Even Hotels locations.
Specifically, Even Hotels franchisees are generally required to offer Coca-Cola products, but under certain limited conditions, they may serve competitive beverages, provided those beverages are not Products of PepsiCo. This exception applies to bottled water sold in glass bottles and water offered to hotel guests on a complimentary basis. Additionally, up to 10% of the space allocated to bottle/can beverages may feature competitive brands that are not Products of PepsiCo, are not sparkling beverages, and are not juice beverages (with an exception for local, niche brands).
The FDD also states that if any beverage initially considered a "Permitted Exception" later becomes a Product of PepsiCo, it will no longer be deemed a Permitted Exception. Furthermore, Even Hotels franchisees are prohibited from serving any smoothies or teas that are a Product of PepsiCo if they choose to serve the Company's smoothies or teas.
Given the absence of a precise definition in the FDD, a prospective Even Hotels franchisee should seek clarification from the franchisor regarding the specific criteria used to classify a beverage as a "Product of PepsiCo." This will help ensure compliance with the franchise agreement and avoid potential conflicts related to beverage offerings.