Is Even Hotels permitted to depict, advertise, promote, or merchandise any Competitive Beverages in association with the Hotels?

According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are generally prohibited from depicting, advertising, promoting, or merchandising any Competitive Beverages in association with the Hotels. The agreement specifies that franchisees cannot enter into any agreement or relationship where Competitive Beverages are associated with any advertising or promotional activity of any kind with the Customer, the Hotels, or any of the trademarks of Customer. A "Competitive Beverage" is defined as any Beverage that is not a Company Beverage, and any Beverage marketed under Beverage trademarks that are not Company or Bottler trademarks.

However, there are exceptions to this rule. Hotels may serve certain Competitive Beverages in Bottle/Can form, including Pellegrino bottled water, Fred brand bottled water at Kimpton hotels only, bottled water sold in a glass bottle (provided it is not a Product of PepsiCo), water offered to hotel guests on a complimentary basis (provided such water is not a Product of PepsiCo), and 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.

Additionally, the agreement acknowledges that third-party tenants renting or leasing space at any Hotel may elect to serve Competitive Beverages due to their own agreements. In such cases, it would not constitute a breach of the agreement as long as the Competitive Beverages are sold only within the tenant's leased space and any advertisements are minimal and do not suggest association with the Customer or the Hotel. Each Hotel is expected to use commercially reasonable efforts to minimize the incidence of Competitive Beverage services.