Under what circumstances is an Atwell Suites franchisee permitted to disclose the Discloser's Confidential Information to Third Parties?

According to Atwell Suites' 2025 Franchise Disclosure Document, a recipient of confidential information from Atwell Suites (the Discloser) is permitted to disclose this information under specific circumstances. These circumstances include disclosures to third parties on a need-to-know basis, where it is deemed reasonably appropriate to analyze, provide, support, improve, receive, or use the services related to the franchise. This suggests that Atwell Suites franchisees may need to share confidential information with vendors or service providers who assist in the operation of the hotel.

Additionally, Atwell Suites franchisees can disclose confidential information to their auditors, attorneys (both internal and external), and regulators. This is a standard practice, as these professionals often require access to sensitive information to fulfill their roles. Disclosure is also permitted if required or allowed by law, regulation, or court order, ensuring compliance with legal obligations. Furthermore, confidential information can be shared with the franchisee's affiliates as deemed appropriate, which may include parent companies or subsidiaries involved in the business.

It's important to note that these permissions are not without conditions. The franchisee must exercise reasonable judgment in determining the necessity of the disclosure and ensure that the recipients are also bound by confidentiality obligations. Moreover, the franchisee is generally required to provide prompt notice to Atwell Suites of any legally required disclosure and cooperate in efforts to resist such requirements or obtain protective orders. These stipulations aim to balance the franchisee's operational needs with Atwell Suites' interest in protecting its proprietary information.