Are Even Hotels franchisees required to comply with Holiday's requirements concerning confidentiality of information?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday does not impose restrictions, nor does it require you to impose restrictions, on any of your employees. However, Holiday and you agree to comply with each other's reasonable requirements concerning confidentiality of information, and in particular, you may not disclose without Holiday's written permission information pertaining to Holiday's marketing and reservation programs that has not yet been disclosed to the public.
Holiday requires that any management agreement between you and a management company be in writing, and that the agreement contain certain provisions including, for example the following: the management company accepts, agrees to abide by, and is subject to all rules, regulations, inspections and requirements of Holiday; you and the management company will cease operating the hotel as an EVEN® Hotel if the License terminates; you and the management company must agree that the License
prevails over the terms of the management agreement if there is any conflict in terms; you and the management company must agree that Holiday's consent to the management agreement or approval of the management company does not relieve you or any guarantor of any obligations under the License; and, you and the management company must keep the confidentiality of trade secrets described in Item 14, and follow the in-term covenants not to compete described in Item 17. Holiday may request at any time a copy of your management agreement for review to determine compliance with requirements of the License.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 85)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, both Holiday and the franchisee must adhere to each other's reasonable requirements regarding the confidentiality of information. Specifically, franchisees are prohibited from disclosing information pertaining to Holiday's marketing and reservation programs that has not yet been made public without obtaining Holiday's written permission. This obligation ensures that sensitive business strategies and non-public data remain protected.
This requirement extends beyond the franchisee to any management company they might hire. The management agreement must include a provision that the management company will keep the confidentiality of trade secrets. This ensures that any third-party operating the hotel on behalf of the franchisee is also bound by the same confidentiality obligations.
This is a fairly standard practice in franchising, as franchisors need to protect their proprietary information and business methods. For a prospective Even Hotels franchisee, this means they must implement procedures to safeguard confidential information and ensure their employees and any hired management company do the same. Failure to comply with these confidentiality requirements could potentially lead to legal repercussions or termination of the franchise agreement.