When do the confidentiality obligations expire for Even Hotels regarding Confidential Information that does not constitute a 'trade secret'?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
For Confidential Information that does not constitute a "trade secret" under applicable Law, these confidentiality obligations will expire three (3) years after the termination or expiration of this Agreement.
For Confidential Information that constitutes a "trade secret" under applicable Law, these confidentiality obligations will continue until such information ceases to constitute a "trade secret" under such applicable Law.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the confidentiality obligations for information that does not qualify as a trade secret expire three years after the termination or expiration of the franchise agreement. This means that after the franchise agreement ends, either through its natural expiration or earlier termination, the franchisee is still legally bound to keep certain information confidential for a period of three years.
However, for information that does meet the legal definition of a 'trade secret,' the confidentiality obligations continue indefinitely, lasting as long as the information remains a trade secret under applicable law. This distinction highlights the importance of understanding what constitutes a trade secret versus general confidential information, as the former carries a much longer-term confidentiality requirement.
This clause is typical in franchise agreements to protect the franchisor's proprietary information and business methods. For a prospective Even Hotels franchisee, it is crucial to carefully review the definition of 'Confidential Information' and 'trade secret' within the franchise agreement to fully understand the scope and duration of these confidentiality obligations. This understanding will help ensure compliance and avoid potential legal issues after the franchise relationship ends.