Under what circumstances is a Crowne Plaza franchisee permitted to disclose the franchisor's Confidential Information to third parties?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3 Permitted Use and Disclosure of Confidential Information. Recipient may disclose the Discloser's Confidential Information: (a) to Third Parties on a need to know basis as it reasonably deems appropriate to analyze, provide, support, improve, receive, or use the Services; (b) to its auditors and attorneys (internal and external) and regulators; (c) as required or permitted by law, regulation, or court order; or (d) to its respective Affiliates as it deems appropriate.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a franchisee, as the recipient of confidential information, has specific allowances for disclosing the franchisor's confidential information to third parties. Crowne Plaza permits disclosure to third parties on a need-to-know basis, as deemed reasonably appropriate, to analyze, provide, support, improve, receive, or use the services provided. This suggests that if a third party's involvement is necessary for the functioning or enhancement of the Crowne Plaza business, disclosure is allowed.
Additionally, Crowne Plaza franchisees can disclose confidential information to their auditors and attorneys, both internal and external, as well as to regulators. Disclosure is also permitted if required or allowed by law, regulation, or court order. Furthermore, confidential information can be shared with the franchisee's respective affiliates as deemed appropriate. These provisions ensure that the franchisee can comply with legal and professional obligations while operating the Crowne Plaza franchise.
However, the franchisee must safeguard Crowne Plaza's confidential information with at least a reasonable degree of care, ensuring that employees and service providers who access the information have confidentiality obligations similar to those of the franchisee. This careful approach aims to protect Crowne Plaza's sensitive business data while allowing for necessary disclosures in specific circumstances. The franchisee is also responsible for any breach of confidentiality by its agents, affiliates, and any third party to whom they disclose confidential information.