How must an Embassy Suites franchisee treat the Proprietary Information?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The proprietary information of HIH, which has been licensed to us, consists of the Manual and all other information or materials concerning the methods, techniques, plans, specifications, procedures, information, systems and knowledge of and experience in the development, operation, marketing
and licensing of the System ("Proprietary Information"). You must treat the Proprietary Information as confidential. You must adopt and implement all reasonable procedures we may periodically establish to prevent unauthorized use or disclosure of the Proprietary Information, including restrictions on disclosure to your employees and the use of non-disclosure and non-competition clauses in agreements with your employees, agents and independent contractors who have access to the Proprietary Information.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 72–74)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, franchisees must treat the Proprietary Information as confidential. This information encompasses the Manual and all other data and materials related to the methods, techniques, plans, specifications, procedures, systems, and knowledge involved in the development, operation, marketing, and licensing of the Embassy Suites system.
To protect this information, Embassy Suites franchisees must adopt and implement reasonable procedures to prevent unauthorized use or disclosure. These procedures include restricting disclosure to employees and using non-disclosure and non-competition clauses in agreements with employees, agents, and independent contractors who have access to the Proprietary Information. This ensures that anyone with access to sensitive information is legally bound to maintain its confidentiality.
Furthermore, franchisees must comply with Embassy Suites' requirements regarding the confidentiality of the Manual, which contains the brand's standards, practices, and procedures. Franchisees are prohibited from copying or distributing any part of the Manual to anyone not affiliated with the Embassy Suites system. They must also promptly notify Embassy Suites in writing if they become aware of any unauthorized use of the Proprietary Information. These measures are in place to safeguard the brand's operational methods and maintain consistency across all franchise locations.
All information provided to the franchisee for use in connection with operating the Hotel during the Term is Embassy Suites' property. Franchisees may not use any such information after the Term, except as expressly permitted by Embassy Suites in writing in the Standards or otherwise. All information Embassy Suites obtains from the franchisee or about the Hotel or its guests or prospective guests under the Franchise Agreement or any related agreement, and all revenues Embassy Suites derives from the Information will also be their property.