What does an applicant for an Embassy Suites franchise agree to treat as confidential?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Certain information concerning Franchisor's system for the Brand, including the Disclosure Document (if required under applicable law), the manual and the Franchise Agreement (together, the "Franchise Information"), has been made available to Applicant. Applicant is generally familiar with the Franchise Information and its requirements and is applying for the form of Franchise Agreement provided. Applicant undertakes to treat the manual which it may receive from Franchisor as confidential. Applicant acknowledges and agrees that the Franchise Information is the property of Hilton Worldwide and/or the Entities, and that Applicant obtains no right, title or interest in or to any of the Franchise Information. Applicant agrees not to use the Franchise Information unless and until a Franchise Agreement is entered into and then in accordance with the terms and conditions of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, as part of the franchise application process, an applicant agrees to treat the manual they may receive from the franchisor as confidential. This manual contains information about the Embassy Suites system.
Embassy Suites emphasizes that the Franchise Information, which includes the Disclosure Document, the manual, and the Franchise Agreement, remains the property of Hilton Worldwide and its entities. The applicant gains no ownership rights to this information. This underscores the importance of maintaining the confidentiality of these documents, as they contain proprietary information critical to the operation of an Embassy Suites hotel.
The applicant is permitted to use the Franchise Information only after a Franchise Agreement is officially signed and then strictly according to the terms outlined in that agreement. This restriction ensures that the applicant does not utilize the confidential information to operate a competing business or disclose it to unauthorized parties before becoming a franchisee. This is a standard practice in franchising to protect the brand's operational methods and trade secrets.