Under what conditions can an Even Hotels location in Texas serve Dr Pepper®?
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").
6. FAIR SHARE
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. Any unpaid invoices by a Hotel will be handled in accordance with the Unpaid Invoice Procedure set forth above.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Even Hotels locations in Texas have a specific allowance to serve Dr Pepper®. This is termed the "Fountain Beverage Permitted Exception." However, this exception comes with conditions.
Specifically, an Even Hotels franchisee in Texas can only serve Dr Pepper® on one valve per dispenser within the hotel. If the franchisee chooses to utilize this exception and serve Dr Pepper®, they will incur an additional annual "fair share lease charge" of $300 for that specific valve. This charge will be invoiced to the hotel, and any unpaid invoices will be handled according to the standard Unpaid Invoice Procedure.
This arrangement allows Even Hotels locations in Texas to cater to local preferences by offering Dr Pepper®, while also ensuring that the core beverage offerings from Coca-Cola are maintained. The additional charge for the Dr Pepper® valve likely helps to offset any potential impact on Coca-Cola's sales volume within the hotel. This is a fairly common practice in the franchise industry, where brands balance corporate standards with regional consumer demands.