For Even Hotels, who owns the Cold Drink Equipment provided by the Bottler?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Bottler will provide each Hotel the Cold Drink Equipment described above at no cost to Customer, except as prohibited by law, rule or regulation, in which case the rent charged will be the lowest legal rate available from the Bottler. All Cold Drink Equipment will be identified by Bottler Bottle/Can Beverage trademarks and will remain the property of Bottler. Except where prohibited by law, all Cold Drink Equipment will exclusively dispense Bottler Bottle/Can Beverages and no items of any kind other than Bottler Bottle/Can Beverages may be stored, displayed or sold in, on or through the Cold Drink Equipment. Use of the Cold Drink Equipment will be in accordance with each Bottler's standard Equipment Placement Terms, and Customer agrees to abide by such terms. To the extent that such standard placement terms are inconsistent with the terms of this Agreement, the terms of this Agreement will control. Bottler will have the right to relocate or remove some or all of the Cold Drink Equipment from a Hotel if Bottler determines the volume of Bottler Bottle/Can Beverages sold through such equipment justifies relocation or removal. Electrical installation costs and utilities for the Cold Drink Equipment will be at the expense of Customer. Customer represents and warrants that electrical service at the Hotels is proper and adequate for the installation of the Cold Drink Equipment, and Customer agrees to indemnify and hold harmless Company and Bottler from any damages arising out of defective electrical services at Hotels.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Bottler retains ownership of the Cold Drink Equipment provided to the hotel. Specifically, the equipment, which includes Venders and Coolers, will be identified with Bottler Bottle/Can Beverage trademarks and remains the Bottler's property. This equipment is intended exclusively for dispensing Bottler Bottle/Can Beverages. The hotel is responsible for the electrical installation costs and utilities for the Cold Drink Equipment and must ensure that the electrical service is adequate for the equipment's installation. The Bottler has the right to relocate or remove equipment if the volume of Bottler Bottle/Can Beverages sold does not justify its placement.
This arrangement means that while Even Hotels franchisees benefit from having the equipment provided at no cost (except where legally restricted), they do not own the equipment and must adhere to the Bottler's terms for its use. The franchisee is responsible for the costs of electrical installation and utilities, which could impact initial setup expenses. The Bottler's right to relocate or remove equipment based on sales volume introduces a performance-based element to the equipment's availability.
This type of arrangement is common in the beverage industry, where suppliers often provide equipment to encourage the sale of their products. For a prospective Even Hotels franchisee, it's important to understand the Bottler's standard Equipment Placement Terms and ensure that the hotel's electrical infrastructure meets the requirements. Franchisees should also consider the potential impact of equipment relocation or removal on their beverage sales strategy.