What are the requirements for an Embassy Suites franchisee regarding non-disclosure and non-competition clauses in agreements with employees?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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 protect the brand's proprietary information, which includes the System's methods, techniques, plans, specifications, procedures, information, systems, knowledge, and experience in development, operation, marketing, and licensing. Franchisees are required to treat this information as confidential.
To prevent unauthorized use or disclosure of proprietary information, Embassy Suites requires franchisees to adopt and implement reasonable procedures. 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 means that as an Embassy Suites franchisee, you will need to ensure that your employees, agents, and independent contractors who have access to sensitive business information sign agreements that prevent them from disclosing this information or competing with the brand, both during and potentially after their association with your franchise. This is a common practice in franchising to protect the brand's competitive advantage and trade secrets.