What must Baymont Inn Suites do if legally compelled to disclose confidential information?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3 Compelled Disclosure. The Receiving Party may disclose Confidential Information of the Disclosing Party if it is compelled by law to do so, provided the Receiving Party gives the Disclosing Party prior notice of such compelled disclosure (to the extent legally permitted) and reasonable assistance, at the Disclosing Party's cost, if the Disclosing Party wishes to contest the disclosure.
If the Receiving Party is compelled by law to disclose the Disclosing Party's Confidential Information as part of a civil proceeding to which the Disclosing Party is aparty, and the Disclosing Party is not contesting the disclosure, the Disclosing Party will reimburse the Receiving Party for its reasonable cost of compiling and providing secure access to such Confidential Information.
Source: Item 22 — CONTRACTS (FDD pages 96–97)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, if the Receiving Party (the franchisee) is legally compelled to disclose Confidential Information of the Disclosing Party (Baymont Inn Suites), the Receiving Party must first provide prior notice to the Disclosing Party about the required disclosure, assuming it is legally permissible to do so.
Additionally, the Receiving Party must offer reasonable assistance to Baymont Inn Suites, at Baymont Inn Suites's expense, should Baymont Inn Suites wish to challenge the disclosure. If the legal compulsion arises from a civil proceeding where Baymont Inn Suites is a party and does not contest the disclosure, Baymont Inn Suites will cover the Receiving Party's reasonable expenses for compiling and providing secure access to the Confidential Information.
This section outlines the steps a franchisee must take to protect Baymont Inn Suites's confidential information, even when faced with a legal mandate to disclose it. It also clarifies the allocation of costs associated with such disclosures, ensuring that Baymont Inn Suites bears the financial burden if it chooses to contest the disclosure or if the disclosure is part of a civil proceeding where Baymont Inn Suites is involved and does not object.