Under what condition will Even Hotels place dispensers in new or acquired hotels during the term?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Where permitted by law, Company will lease to Customer without any additional charge during the Term the Dispensers owned by Company as follows: (i) for Hotels existing as of the Agreement Effective Date, the Dispensers that are currently installed, without extending the equipment lease term length of any such currently installed Dispensers, and (ii) for each Hotel that becomes a Hotel during the Term, the Dispensers reasonably necessary to enable such Hotel to dispense a quality Fountain Beverage. With respect to new and/or acquired hotels that become Hotels during the Term, unless otherwise mutually agreed upon by the parties, Dispensers will be placed in such new or acquired Hotel only if such Hotel is forecast to purchase a minimum of 400 gallons of Company's Fountain Syrups per Year. Customer will use commercially reasonable efforts to assist in the conversion of any Hotels purchasing less than 400 gallons of Company's Fountain Syrups per Year to a Bottle/Can Program as described in Exhibit A-3. No ice makers or water filters will be provided to any Hotel under this Agreement. Equipment innovations that require a separate agreement (such as Coca-Cola Freestyle) will also not be provided without a separate agreement. No Hotel will alter or add to any Dispenser provided by Company without Company's prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Even Hotels will place dispensers in new or acquired hotels during the term only if the hotel is forecast to purchase a minimum of 400 gallons of the company's fountain syrups per year, unless otherwise mutually agreed upon by both parties.
This requirement ensures that the investment in providing and maintaining the dispensers is justified by a sufficient level of product consumption. It also encourages franchisees to actively promote and sell the company's fountain beverages to meet the minimum purchase threshold.
If a new or acquired hotel is not initially projected to meet the 400-gallon requirement, the franchisee is expected to assist in converting the hotel to a Bottle/Can Program. This provides an alternative method for offering the company's beverages while avoiding the cost of dispenser equipment. However, Even Hotels and the franchisee can mutually agree to install dispensers even if the 400-gallon forecast is not met.