Is an Embassy Suites franchisee required to keep the Standards and Manual confidential?

According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees are required to maintain the confidentiality of the Standards, the Manual, and all other Proprietary Information. This obligation is outlined in the franchise agreement, emphasizing the importance of protecting sensitive information related to the Embassy Suites system. Franchisees acknowledge that they do not acquire any ownership interest in the Proprietary Information, but only have the right to use it for operating the hotel under the terms of the agreement. This is a common practice in franchising, as it protects the brand's operational methods and trade secrets.

The definition of Proprietary Information includes all information and materials concerning the methods, techniques, plans, specifications, procedures, data, systems, and knowledge related to the Embassy Suites system's development, operation, marketing, and licensing. This encompasses both the Standards and the Manuals, whether developed by the franchisor, the franchisee, or a third party. This broad definition ensures that virtually any information critical to the operation of the franchise is protected.

This confidentiality requirement is crucial for maintaining the consistency and integrity of the Embassy Suites brand across all locations. By keeping the Standards and Manual confidential, franchisees help prevent competitors from gaining access to valuable operational insights and strategies. This protection extends to all aspects of the business, ensuring that the unique elements of the Embassy Suites system remain exclusive to its franchisees. Failure to comply with this confidentiality clause could result in a breach of the franchise agreement, potentially leading to penalties or termination of the franchise.