What rights does IHG have regarding Licensee Personal Data transferred to them by an Atwell Suites franchisee?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Personal Data is being disclosed only for the limited and specific purposes set forth in this License.
Each party shall comply with its obligations and will provide the same level of privacy protection as required by the Data Privacy Laws and shall notify the other party if it makes a determination that it can no longer meet its obligations under the Data Privacy Laws with respect to its use of the other party's Personal Data.
Each party shall have the right to take reasonable and appropriate steps to help ensure that any Personal Data that is licensed by either party to the other is used in a manner that is consistent with each party's respective obligations under the Data Privacy Laws and, upon written notice, may take reasonable and appropriate steps to stop and remediate unauthorized use of such licensed data. "Data Privacy Laws" means, to the extent applicable, the privacy and data protection laws and regulations applicable to the Personal Data about data subjects in the United States.
- (2) Use of Licensee Personal Data. To the extent Licensee transfers Licensee Personal Data or Guest Data to IHG or its Affiliates, such data forms part of the IHG Personal Data and IHG may use such data as permitted by applicable law.
Licensee hereby grants to IHG and its Affiliates a non-exclusive, worldwide, perpetual and royalty-free license to use (including the right to sublicense) the Licensee Personal Data (except for the Excluded Personal Data) free of charge, for the purposes of IHG's performance of its obligations under this License, including, without limitation, the right to transfer Licensee Personal Data across national borders and to transfer Licensee Personal Data to third parties.
IHG may retain a copy of Licensee Personal Data upon the termination or expiration of this License.
Licensee represents, warrants, and covenants that any Licensee Personal Data transferred to IHG or its Affiliates for the purposes of this License has been collected, retained, used, and transmitted in compliance with applicable Data Privacy Laws.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, IHG has specific rights regarding licensee personal data. If a franchisee transfers licensee personal data or guest data to IHG or its affiliates, this data becomes part of IHG Personal Data, which IHG may then use as permitted by applicable law. The franchisee grants IHG and its affiliates a non-exclusive, worldwide, perpetual, and royalty-free license to use the licensee personal data (excluding any 'Excluded Personal Data') free of charge. This license includes the right to sublicense the data and transfer it across national borders to third parties, for the purposes of IHG fulfilling its obligations under the license agreement. IHG is also allowed to retain a copy of the licensee personal data even after the termination or expiration of the license agreement.
This means that Atwell Suites franchisees must be aware that any personal data they transfer to IHG can be used by IHG for various purposes, including marketing, improving services, and fulfilling obligations under the franchise agreement. The perpetual and royalty-free nature of the license means that IHG can continue to use this data indefinitely, even after the franchise agreement ends, without having to pay any additional fees to the franchisee. The franchisee, however, retains ownership of 'Excluded Personal Data'.
It is important for prospective Atwell Suites franchisees to understand the scope of data they are transferring and how IHG intends to use it. Franchisees should ensure they comply with all applicable data privacy laws when collecting, retaining, using, and transmitting licensee personal data to IHG. Franchisees should also clarify what constitutes 'Excluded Personal Data' to ensure they understand what data is not covered by the license granted to IHG. Understanding these data rights and obligations is crucial for maintaining compliance and protecting the privacy of individuals whose data is being transferred.