Is an Even Hotels franchisee required to purchase Company Fountain Syrups directly from the Company?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels that serve Fountain Beverages will serve a core brand set of Company Fountain Beverages that consists of Coca-Cola®, Diet Coke®, Sprite® and Coke ZeroTM, and the remaining Company Fountain Beverages will be selected by Customer, subject to Company's approval, which shall not be unreasonably withheld. All Fountain Beverages served in the Hotels must be Company Fountain Beverages, except for the Fountain Beverage Permitted Exception. In addition, no Hotel may dedicate any valve on a Dispenser leased from Company to dispense tap water. For the avoidance of doubt, each Hotel shall be able to serve water on one valve per Dispenser through a Subtab Mechanism. Company will use its commercially reasonable efforts to make a line of Company Fountain Syrups that is as broad as possible (based on local geography) available to each Hotel in order to allow Customer to fulfill its obligations under this Agreement.
1.2 Permitted Exception
Hotels in the State of Texas, subject to the Fair Share provisions described in Section 7 of this Exhibit A-1, may serve Dr Pepper®, but only on one valve per Dispenser per Hotel (the "Fountain Beverage Permitted Exception").
2. PRICING
During the Term, each Hotel will have the right to purchase Company Fountain Syrups from Company at Company's thencurrent published chain account prices, which prices are subject to change from time to time.
3.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees have the right to purchase Company Fountain Syrups from the Company at the Company's current published chain account prices, which are subject to change. This indicates that while franchisees are not explicitly required to purchase fountain syrups directly from the Company, they have the option to do so at established chain account prices.
The FDD specifies that hotels serving fountain beverages will serve a core brand set of Company Fountain Beverages, including Coca-Cola®, Diet Coke®, Sprite®, and Coke ZeroTM. The remaining Company Fountain Beverages will be selected by the franchisee, subject to the Company's approval, which will not be unreasonably withheld. All fountain beverages served in the hotels must be Company Fountain Beverages, except for a permitted exception.
For hotels in Texas, subject to fair share provisions, they may serve Dr Pepper® on one valve per dispenser per hotel. The Company will use commercially reasonable efforts to make a line of Company Fountain Syrups that is as broad as possible available to each hotel, based on local geography, to allow the franchisee to fulfill its obligations under the agreement.