How can the Franchisee use the confidential information provided by Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
whole or in part, any documentation, software or other confidential information, knowledge, or know-how associated with the Services provided under this Agreement which may be communicated or provided to Franchisee, or of which Franchisee may be apprised, by virtue of Franchisee's operation under this Agreement, or otherwise make the same available to any unauthorized person. Franchisee shall divulge such information only to such of Franchisee's employees or agents as must have access to it in order to operate the Hotel; all other persons shall be deemed "unauthorized" for purposes of this Agreement. All such information, including without limitation, aggregated, anonymized market data and recommendations by Franchisor regarding rates, pricing, inventory, room allocations and rate allocations, is confidential and provided by Franchisor to Franchisee solely for the purposes of operating the Hotel, and Franchisee expressly acknowledges that such information shall not be used or considered in any respect by the Franchisee in reaching decisions for any other hotels owned, operated or franchised by the Franchisee. Franchisee further acknowledges that it will not divulge to Franchisor any confidential information, including business strategies or pricing, about non-Marriott properties that Franchisee owns, operates, or franchises. The information that is the subject of this Section 2 shall be deemed "Confidential Information" for purposes of the Franchise Agreement. The obligations of Franchisee under this Section 2 shall survive the termination of this Agreement.
Source: Item 7 — Franchisor reserves the right to challenge the applicability of any law that declares provisions in the Agreement void or unenforceable. (FDD pages 288–363)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott Franchise Disclosure Document, franchisees can only use confidential information, knowledge, or know-how associated with the services provided under the Franchise Agreement to operate their Delta Hotels By Marriott hotel. This includes documentation, software, aggregated, anonymized market data, and recommendations from Delta Hotels By Marriott regarding rates, pricing, inventory, room allocations, and rate allocations. Franchisees are explicitly prohibited from using this information for any other hotels they may own, operate, or franchise.
Delta Hotels By Marriott requires franchisees to limit access to confidential information to only those employees or agents who need it to operate the hotel. All other individuals are considered unauthorized. Franchisees also agree not to disclose any confidential information, such as business strategies or pricing, about non-Marriott properties they may own, operate, or franchise to Delta Hotels By Marriott.
These obligations regarding confidential information survive the termination of the Franchise Agreement, meaning that even after the agreement ends, the franchisee must continue to protect and not misuse the confidential information they received during the term of the franchise. This is a standard practice in franchising to protect the brand's proprietary information and maintain a competitive advantage.