factual

What assurances must be obtained when making a permitted disclosure of confidential information related to the Crowne Plaza Agreement?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

These confidentiality obligations will not restrict any disclosure required by Law, provided that Hotel gives prompt notice to IHG of any such legal requirement and reasonably cooperates with IHG at IHG's request and expense to resist such legal requirement or to obtain a protective order.

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to Crowne Plaza's 2025 Franchise Disclosure Document, if a Crowne Plaza Hotel is legally required to disclose confidential information, it must first promptly notify IHG (InterContinental Hotels Group). The hotel must then reasonably cooperate with IHG, at IHG's request and expense, to either resist the legal requirement for disclosure or to obtain a protective order. This ensures that IHG has the opportunity to protect its confidential information, even when disclosure is mandated by law.

This requirement places a significant responsibility on the franchisee to act quickly and in coordination with IHG when facing a legal obligation to disclose confidential information. The franchisee must be proactive in informing IHG and working with them to find a solution that minimizes the risk of confidential information being exposed. This could involve legal challenges or seeking court orders to protect the information.

The franchisor's responsibility to cover the expenses associated with resisting disclosure or obtaining a protective order is a notable benefit for the franchisee. Legal battles can be costly, and this provision ensures that the franchisee is not solely burdened with these expenses. However, the franchisee must still dedicate time and resources to cooperate with IHG's efforts.

Overall, this clause highlights the importance Crowne Plaza places on protecting its confidential information and the steps it takes to ensure that franchisees are aligned with this goal. It also demonstrates a willingness to support franchisees in navigating legal challenges related to confidentiality, provided the franchisee actively cooperates with IHG's efforts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.