Under what circumstances does the Even Hotels participation agreement regarding Bottler Bottle/Can Beverages apply to a specific Even Hotels location?

According to the 2025 FDD, the Hotel Participation Agreement between The Coca-Cola Company and the Even Hotels location regarding Bottler Bottle/Can Beverages applies only if the Even Hotels location is situated within the geographic territory where a specific Bottler is authorized to distribute, promote, market, and sell these beverages. This means that the agreement's applicability is contingent upon the Bottler's authorized distribution area. The Even Hotels location must be within the Coca-Cola Company's or its authorized bottler's distribution territory for the agreement to be in effect.

For a prospective Even Hotels franchisee, this condition is important because it determines whether the franchisee is obligated to purchase Bottler Bottle/Can Beverages from a specific bottler or the Coca-Cola Company. If the hotel is outside the authorized territory, the agreement does not apply, potentially allowing the franchisee more flexibility in sourcing beverages. However, if the agreement does apply, the franchisee must adhere to the terms, which may include purchasing minimum quantities, participating in promotional activities, and using specific cold drink equipment.

Furthermore, the agreement states that if an Even Hotels location is eligible for an alternative marketing or funding program offered by the Coca-Cola Company or its bottlers, the company has the sole discretion to decide which program will be available to that hotel. In no event will any Hotel be eligible for more than one marketing or funding program offered by Company, or any of its subsidiaries or Authorized Bottlers. This means that the franchisee may not be able to choose between different programs and is limited to what the Coca-Cola Company offers. The franchisee must also notify the Coca-Cola Company in writing of any opening, acquisition, change in ownership, termination of license agreement, or closing of any Hotel as promptly as is consistent with Customer's business processes.

In addition, the Even Hotels franchisee is obligated to properly dispose of all packaging, not resell Company Beverages or Company Beverage components or ingredients (including packaging) or Bottler Bottle/Can Beverages to third parties except for the purpose of environmentally safe disposal and not directly or indirectly ship, distribute or sell any Bottler Bottle/Can Beverages outside of (a) the geographic scope of the Company's internally defined market unit in which such Beverages were sold to Customer (Company will make the geographic scope of any such market unit available to Customer upon request) with respect to such Beverages sold by Company and (b) with respect to products sold by a Bottler, the geographic territory in which the Bottler is authorized to distribute, promote, market, and sell Company Bottle/Can Beverages and (iv) sell finished Fountain Beverage only in cups or glasses and not in closed containers that retain carbonation, or in bottles or cans.