What confidentiality requirements apply to Atwell Suites franchisees?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday does not impose restrictions, nor does it require you to impose restrictions, on any of your employees. However, Holiday and you agree to comply with each other's reasonable requirements concerning confidentiality of information. In particular, you may not disclose, without Holiday's written permission, information pertaining to Holiday's marketing and reservation programs that have not been disclosed to the public.
Even though any management company must be acceptable to Holiday, you remain solely responsible for the selection, conduct and performance of any required management company, General Manager and all staff members and employees and Holiday has no responsibilities or liability in connection with your selection and its, his or her conduct or performance.
Holiday requires that any management agreement between you and a management company be in writing, and that the agreement contain certain provisions, including without limitation the following: the management company agrees to abide by all rules, regulations, inspections and requirements of Holiday; you and the management company must cease operating the Hotel as a Brand System Hotel if the License terminates; you and the management company must agree that the License prevails over the terms of the management agreement if there is any conflict in terms; you and the management company agree that Holiday's consent to the management agreement or approval of the management company does not relieve you or any guarantor of any obligations under the License; and, you and the management company will keep the confidentiality of trade secrets described in Item 14, and follow the covenants not to compete described in Item 17. Holiday may request at any time a copy of your management agreement for review to determine compliance with requirements of the License.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 90–92)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, both Atwell Suites and the franchisee must comply with each other's reasonable requirements regarding the confidentiality of information. Specifically, franchisees are prohibited from disclosing information about Atwell Suites' marketing and reservation programs that have not been made public without obtaining written permission from Atwell Suites. This ensures that sensitive business strategies and proprietary information remain protected.
This confidentiality requirement extends to situations where a management company is hired to operate the Atwell Suites hotel. The management agreement between the franchisee and the management company must include a provision that the management company will keep the confidentiality of trade secrets as described in Item 14 of the FDD. This ensures that even if a third party is managing the hotel, Atwell Suites' confidential information remains protected.
In practical terms, this means that an Atwell Suites franchisee must be careful about what information they share with third parties, including employees, vendors, and even customers. Franchisees should establish clear policies and procedures to protect confidential information and ensure that all employees are aware of their obligations. Failure to comply with these confidentiality requirements could result in legal action or termination of the franchise agreement.