Who can an Americas Best Value Inn franchisee disclose Confidential Information to?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Confidentiality of this Agreement. The Franchisee Parties agree that the existence of this Agreement and its terms are strictly confidential and that, therefore, the Franchisee Parties and the other Releasing Parties shall not provide or disclose to any third party, unless authorized in writing to do so by us or properly directed or ordered to do so by public authority, any information regarding the existence of this Agreement, the terms or conditions contained in this Agreement, or any dealings or negotiations with us or any of the Released Parties related to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, franchisees are generally prohibited from disclosing the existence and terms of their franchise agreement to third parties. However, there are specific exceptions to this rule. An Americas Best Value Inn franchisee can disclose confidential information if they receive written authorization from the franchisor to do so. Additionally, disclosure is permitted if a public authority properly directs or orders the franchisee to reveal such information.
This confidentiality clause is designed to protect the franchisor's interests by preventing sensitive business information from falling into the hands of competitors or other parties who could use it to the detriment of the Americas Best Value Inn system. The clause covers all information regarding the existence of the agreement, its terms and conditions, and any dealings or negotiations with the franchisor.
For a prospective franchisee, this means understanding that discretion is paramount. Before sharing any details about the franchise agreement, especially with advisors or potential investors, it is essential to seek written consent from Americas Best Value Inn. Being compelled by law or a public authority to disclose information is an exception, but franchisees should document such instances carefully. Failure to comply with this confidentiality provision could result in legal repercussions and damage the relationship between the franchisee and Americas Best Value Inn.