What is included in the 'Proprietary Information' of the Embassy Suites system?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Proprietary Information" means all information or materials concerning the methods, techniques, plans, specifications, procedures, data, systems and knowledge of and experience in the development, operation, marketing and licensing of the System, including the Standards and the Manuals, whether developed by us, you, or a third party.
You acknowledge and agree that you do not acquire any interest in the Proprietary Information other than the right to utilize the same in the development and operation of the Hotel under the terms of this Agreement.
You agree that you will not use the Proprietary Information in any business or for any purpose other than in the development and operation of the Hotel under the System and will maintain the absolute confidentiality of the Proprietary Information during and after the Term.
You will not make unauthorized copies of any portion of the Proprietary Information; and will adopt and implement all procedures we may periodically establish in our business judgment to prevent unauthorized use or disclosure of the Proprietary Information;
- 5.1.14 treat as confidential the Standards, the Manual and all other Proprietary Information.
You acknowledge and agree that you do not acquire any interest in the Proprietary Information other than the right to utilize the same in the development and operation of the Hotel under the terms of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Proprietary Information encompasses a wide array of details related to the Embassy Suites system. This includes all information and materials concerning the methods, techniques, plans, specifications, procedures, data, systems, and knowledge related to the development, operation, marketing, and licensing of the Embassy Suites system. This definition extends to information developed by Embassy Suites, the franchisee, or even a third party.
Specifically, the Proprietary Information includes the Standards and the Manuals that dictate how an Embassy Suites hotel should be run and maintained. These resources provide franchisees with the necessary guidelines to ensure consistency and quality across all Embassy Suites locations. Franchisees are expected to treat the Standards, the Manual, and all other Proprietary Information as confidential, acknowledging that they only have the right to use this information for the development and operation of their Embassy Suites hotel under the terms of the franchise agreement.
The agreement emphasizes that franchisees do not acquire any ownership interest in the Proprietary Information beyond the right to use it for their hotel's operation. Franchisees are prohibited from using this information for any other business or purpose outside of the Embassy Suites system and must maintain its confidentiality both during and after the term of the franchise agreement. Unauthorized copying of any part of the Proprietary Information is strictly forbidden, and franchisees must implement procedures to prevent any unauthorized use or disclosure.
This protection of Proprietary Information is a common practice in franchising, ensuring that the unique methods and knowledge that define the brand are not misappropriated. For a prospective Embassy Suites franchisee, understanding the scope and restrictions surrounding Proprietary Information is crucial. It highlights the importance of maintaining confidentiality and adhering to the established systems and standards to protect the brand's integrity and competitive advantage.