What happens if the Franchisee breaches the confidentiality agreement with Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor's prior written consent, which consent may be granted or withheld in Franchisee's sole discretion, communicate, transmit, divulge, copy, duplicate, record, or otherwise reproduce, or use for the benefit of any third party or business other than the Hotel, in 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 inventory and room 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, 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, the franchisee is responsible for maintaining the confidentiality of certain information. The franchisee cannot disclose documentation, software, or other confidential information, knowledge, or know-how associated with the services provided under the agreement to any unauthorized person. The franchisee can only share confidential information with employees or agents who need access to it to operate the hotel. All other persons are considered unauthorized.
Delta Hotels By Marriott considers aggregated, anonymized market data and recommendations regarding rates, pricing, inventory, room allocations, and rate allocations as confidential. This information is provided solely for operating the hotel, and the franchisee cannot use it for decisions related to other hotels they own, operate, or franchise. The franchisee also agrees not to share confidential information about non-Marriott properties, such as business strategies or pricing, with Delta Hotels By Marriott.
The information covered by this section is deemed "Confidential Information" for the purposes of the Franchise Agreement, and the franchisee's obligations to maintain confidentiality survive the termination of the agreement. The FDD does not explicitly state the consequences of breaching the confidentiality agreement, but it does state that the franchisor reserves the right to challenge the applicability of any law that declares provisions in the agreement void or unenforceable.