What happens if a recipient breaches the restrictions on the use or disclosure of Confidential Information related to Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.5 Injunctive Relief. Recipient acknowledges that breach of the restrictions on use or disclosure of Confidential Information could result in immediate and irreparable harm to Discloser, and money damages may be inadequate to compensate for that harm.
Discloser shall be entitled to seek equitable relief, in addition to all other available remedies, to redress any such breach.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, if a recipient breaches the restrictions on the use or disclosure of Confidential Information, Crowne Plaza is entitled to seek equitable relief, in addition to all other available remedies, to address the breach. The document states that a breach could result in immediate and irreparable harm to the disclosing party, and money damages may not be adequate compensation for the harm caused. This clause emphasizes the importance Crowne Plaza places on maintaining the confidentiality of its proprietary information.
This means that Crowne Plaza can pursue legal actions such as injunctions to immediately stop the unauthorized use or disclosure of confidential information. This is in addition to seeking monetary damages to cover any financial losses resulting from the breach. The inclusion of injunctive relief highlights the potential for significant and irreversible damage if confidential information is compromised.
For a prospective Crowne Plaza franchisee, this underscores the critical need to protect the brand's confidential information. Franchisees must implement robust security measures and ensure that their employees and agents are also bound by strict confidentiality agreements. Failure to do so could result in costly legal battles and potential damage to the Crowne Plaza brand. Franchisees should fully understand what constitutes Confidential Information, as defined in section 9.1 of the FDD, and take proactive steps to prevent any unauthorized use or disclosure.