Under what condition are Even Hotels in Texas permitted an exception to beverage requirements?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels in the State of Texas, subject to the Fair Share provisions described in Section 7 of this Exhibit A-1, may serve Dr Pepper®, but only on one valve per Dispenser per Hotel (the "Fountain Beverage Permitted Exception").
If Customer desires to serve Dr Pepper as set forth above in the Permitted Exception, an additional annual fair share lease charge of $300 for each one of those valves will be incurred. Charges will be invoiced to each Hotel.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, hotels located in the State of Texas have a specific exception regarding fountain beverages. Subject to adhering to fair share provisions, Even Hotels in Texas are permitted to serve Dr Pepper. However, this exception is limited to only one valve per dispenser within the hotel.
This means that while Even Hotels are generally required to serve Company Fountain Beverages (Coca-Cola, Diet Coke, Sprite, and Coke Zero), Texas locations can offer Dr Pepper through one dedicated fountain dispenser valve. This exception acknowledges the regional popularity of Dr Pepper in Texas.
However, if an Even Hotel in Texas chooses to utilize this exception and serve Dr Pepper, they will incur an additional annual fair share lease charge of $300 for the valve. This charge is invoiced to the hotel, and any unpaid invoices will be handled according to the standard Unpaid Invoice Procedure. This cost should be factored into the hotel's operating budget if they plan to offer Dr Pepper.
This exception provides Even Hotels in Texas with the flexibility to cater to local preferences while still primarily offering Company Fountain Beverages. Franchisees should carefully consider the potential demand for Dr Pepper and the associated costs before deciding whether to utilize this permitted exception.