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What does the term “financial fairness” mean? In the agreement between the Alliance and the American Beverage Association, Cadbury Schweppes, the Coca-Cola Company, and PepsiCo, Inc., the beverage companies agreed that their bottlers would be willing to amend existing contracts as long as amendments were financially fair to both the bottler and the school or district. Mutual financial fairness means the development of a fair solution for both parties. For example, some older contracts may have included volume guarantees or annual payments. As part of a financially fair amendment, bottlers may ask for an extension of the contract, a change in applicable commission rates or a reduction in annual funding. |
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