What does the proprietary information of HIH, licensed to Embassy Suites, consist of?
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, the proprietary information of HIH (Hilton International Holding), which is licensed to Embassy Suites, includes the Manual and all other information or materials concerning the methods, techniques, plans, specifications, procedures, information, systems, and knowledge related to the development, operation, marketing, and licensing of the Embassy Suites system. This is collectively referred to as "Proprietary Information."
Embassy Suites franchisees are obligated to treat this Proprietary Information as confidential and must implement reasonable procedures to prevent unauthorized use or disclosure. This includes placing restrictions on disclosing the information to employees and using non-disclosure and non-competition clauses in agreements with employees, agents, and independent contractors who have access to it. This is a fairly standard practice in franchising, as franchisors need to protect their operational methods and brand standards.
The FDD also states that franchisees must comply with any modifications or discontinuation of copyrights if instructed by Embassy Suites, without any obligation for reimbursement of costs or damages. While HIH claims copyrights on certain materials like the Hilton OnQ software, franchisees must notify Embassy Suites of any unauthorized use of this software or other Hilton systems. There are currently no agreements limiting a franchisee's right to use HIH's copyrighted materials, nor are there any known infringing uses that could materially affect a franchisee's use of them.
Overall, this section of the FDD emphasizes the importance of protecting Embassy Suites's confidential information and intellectual property. Franchisees must maintain confidentiality and adhere to the brand's standards to ensure the integrity and consistency of the Embassy Suites system. Prospective franchisees should carefully review these obligations and understand the potential consequences of breaching confidentiality or infringing on intellectual property rights.