Under what conditions are third-party tenants at an Even Hotels location allowed to serve Competitive Beverages without breaching the agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties acknowledge that there may be current or future third party tenants that are unaffiliated with Customer renting or leasing space at any Hotel and that elect to serve Competitive Beverages or are required to do so due to a binding agreement with a Competitive Beverage supplier (or another third party that has the authority to determine Beverage selection at such tenant's area).
Such tenants' leased areas shall be excluded from the scope of this Agreement.
Therefore, it shall not constitute a breach of this Agreement for such tenant(s) to serve or make available Competitive Beverages; provided, however, that: (i) such Competitive Beverages are sold or made available only within such tenant's leased space, (ii) any advertisements for such Competitive Beverages at the relevant Hotel will be reasonable under the circumstances and generally de minimis in nature (preferably, only within such tenant's leased space) and will not suggest that such Competitive Beverages are associated in any manner with Customer or the Hotel.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, third-party tenants renting or leasing space at an Even Hotels location may serve Competitive Beverages without breaching the franchise agreement under specific conditions. This allowance applies to tenants unaffiliated with the Customer (likely referring to the franchisee) who either choose to serve Competitive Beverages or are obligated to do so through an existing agreement with a Competitive Beverage supplier or another party controlling beverage selection for the tenant's space.
For this exception to apply, the Competitive Beverages must be sold or made available only within the tenant's leased space. Furthermore, any advertisements for these beverages at the Even Hotels location must be reasonable and minimal, ideally confined to the tenant's leased space. These advertisements should not suggest any association between the Competitive Beverages and Even Hotels or the Customer.
This provision acknowledges the reality that Even Hotels locations may have existing tenants with pre-existing beverage agreements. It aims to balance the franchisee's obligations to promote specific beverage brands with the rights and obligations of these third-party tenants. Franchisees should be aware of this clause and understand its implications for managing tenant relationships and beverage offerings within their Even Hotels location.