Must Even Hotels franchisees sign a Participation Agreement with The Coca-Cola Company?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Coca-Cola® Agreement:
Pursuant to the Standards, Hotels located within the 50 United States (including the District of Columbia) are required to participate in the IHG |Coca-Cola® Beverage Program (the "Beverage Program"). You must sign a Participation Agreement with The Coca-Cola Company ("TCCC"), a copy of which is attached as Exhibit G-3, unless a waiver is granted by Holiday. Waivers may be granted by Holiday if your Hotel has a pre-existing beverage agreement with another supplier. Under the Beverage Program, participating Hotels are subject to the standards and requirements summarized below.
All participating Hotels are required to make available to guests a core set of TCCC bottled/canned beverages (subject to availability) that consists of Coca-Cola®, Diet Coke®, Sprite® and Coke Zero Sugar™. Hotels that serve fountain beverages are required to include Coca-Cola®, Diet Coke®, Sprite® and Coke Zero Sugar™. In addition, Hotels are required to serve Simply® Orange (a TCCC juice product). All non-alcoholic bottled/canned beverages (including waters), fountain beverages, and juices offered, served, or sold by your Hotel must be TCCC beverages, unless a permitted exception in your Hotel's Participation Agreement applies. All beverages displayed and offered in coolers and vending machines must be TCCC products, with limited exceptions for equipment owned by the Hotel. You may also be required to sign a lease agreement with TCCC for TCCC-provided equipment; a copy of which is included as part of Exhibit G-3. Hotels may not serve, offer, or display any products of PepsiCo.
All non-alcoholic beverages served at meetings or events hosted by your Hotel should be TCCC products, unless serving non-TCCC beverages was required by the client as a condition of booking the function. In such circumstances, serving competitive beverages is permitted; provided, that certain restrictions set forth in your Participation Agreement are followed. Third-party restaurant or bar outlets operating at the Hotel are not required to follow the Beverage Program but may do so at their discretion.
TCCC provides certain funding based on the volume of TCCC products sold in Brand System Hotels. Most of this funding is administered by a cross-functional Business Partnership Team with representatives from TCCC and SCH, who work to identify and execute opportunities to create value for TCCC and the Brand System. Some funding is received by SCH on behalf of the Brand System and utilized for the benefit of the Brand System and/or to promote the sale of TCCC beverages throughout the Brand System. In connection with such funding and as part of the Coca-Cola Beverage Program, Hotels are required to participate in various promotional programs and marketing activities as directed by SCH.
Additional requirements or restrictions in the Standards or the Participation Agreement may apply to your Hotel. Unless clearly covered by a permitted exception stated in your Participation Agreement, exemptions to the Standards relating to the Beverage Program or to requirements of the Hotel Participation Agreement require written approval from Holiday or SCH pursuant to the waiver application process.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees located within the 50 United States (including the District of Columbia) are generally required to participate in the IHG | Coca-Cola® Beverage Program. This requirement means that, as a standard practice, franchisees must sign a Participation Agreement with The Coca-Cola Company (TCCC). A copy of this agreement is included as an exhibit in the FDD. However, there is a possibility of obtaining a waiver from Holiday, the franchisor, if the hotel already has a pre-existing beverage agreement with another supplier.
Under the Beverage Program, participating Even Hotels are expected to adhere to specific standards. They must ensure that a core set of TCCC bottled and canned beverages, including Coca-Cola®, Diet Coke®, Sprite®, and Coke Zero Sugar™, are available to guests, subject to availability. For hotels that serve fountain beverages, the same Coca-Cola products must be included. Additionally, Simply® Orange, a TCCC juice product, is a required offering. Unless an exception is permitted under the Participation Agreement, all non-alcoholic bottled and canned beverages, fountain beverages, and juices must be TCCC products. Coolers and vending machines must also exclusively offer TCCC products, with limited exceptions for equipment owned by the hotel. Notably, Even Hotels are prohibited from serving, offering, or displaying any products from PepsiCo.
Furthermore, all non-alcoholic beverages served at meetings or events hosted by the Even Hotel should be TCCC products. An exception is allowed if a client specifically requires non-TCCC beverages as a condition of booking the function, but even in such cases, certain restrictions outlined in the Participation Agreement must be followed. It is important to note that third-party restaurants or bar outlets operating within the hotel are not mandated to follow the Beverage Program, but they have the option to do so at their discretion. These requirements ensure consistency in beverage offerings across Even Hotels and leverage the brand recognition of Coca-Cola products.
TCCC provides funding based on the volume of their products sold in Brand System Hotels. This funding is managed by a Business Partnership Team consisting of representatives from both TCCC and SCH, who collaborate to identify and implement opportunities that benefit both TCCC and the Brand System. Some of this funding is received by SCH on behalf of the Brand System and is used to promote the sale of TCCC beverages throughout the system. As part of the Coca-Cola Beverage Program, Even Hotels are required to participate in various promotional programs and marketing activities as directed by SCH. Franchisees should carefully review the Participation Agreement and the Standards for any additional requirements or restrictions that may apply to their hotel. Any exemptions to the Standards or the requirements of the Hotel Participation Agreement must be obtained through written approval from Holiday or SCH following the waiver application process, unless clearly covered by a permitted exception in the Participation Agreement.