What is a Baymont Inn Suites franchisee prohibited from doing with Confidential Materials after the Termination Date?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Representations and Warranties. You and each Guarantor represent and warrant to us that: (a) you have reported the Gross Room Revenues of the Facility accurately and correctly calculated the fees due during the Term of the Franchise Agreement; (b) after the Termination Date, neither your nor any Guarantor will retain possession of any Confidential Materials we provided to you; (c) you, each Guarantor, and your respective agents have not disclosed or made unauthorized copies of any Confidential Materials in violation of the Franchise Agreement; (d) no consent of any third party is required to enter into or perform this Agreement; (e) neither your nor any Guarantor has filed a lawsuit or arbitration demand against us, our direct and indirect parent companies or affiliates; (f) neither you nor any Guarantor is the subject of any pending bankruptcy, receivership, composition, assignment, or similar proceeding; (g) you have obtained the necessary authorization to execute and perform this Agreement; and (h) the persons negotiating and executing this Agreement on your behalf have been duly authorized by your owners and your governance board to do so.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, after the termination date of the franchise agreement, a franchisee, along with any guarantors, is prohibited from retaining possession of any Confidential Materials provided by Baymont Inn Suites. Additionally, the franchisee and any guarantors, including their agents, are prohibited from disclosing or making unauthorized copies of any Confidential Materials, which would be considered a violation of the Franchise Agreement.
This provision ensures that Baymont Inn Suites maintains control over its proprietary information and trade secrets even after a franchise agreement ends. This is a standard practice in franchising, as the franchisor's confidential information is crucial to the brand's identity and operational methods.
For a prospective Baymont Inn Suites franchisee, this means understanding that the obligation to protect confidential information extends beyond the term of the franchise agreement. Failure to comply with these confidentiality obligations could result in legal action from Baymont Inn Suites.