What are the obligations of Holiday and the franchisee regarding confidentiality of information related to Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
a General Manager and all staff members and/or employees of your own choice without Holiday's advance approval; provided, however that your License may require a specified level of experience for such individuals. The General Manager and other department heads and staff, including Directors of Sales, must attend Holiday's training programs (see Item 11).
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.
Holiday requires that you enter into an IHG Voice Reservation Services agreement with Holiday's parent SCH (see Item 6, Note 17 and Exhibit G-2).
Your obligation to hire a management company, General Manager or Director of Sales to operate the Hotel for you does not relieve you and any of your guarantors from liability to Holiday and IHG Technology Solutions LLC under the terms of the License, the Master Technology Services Agreement and any Guaranty.
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 (the franchisor) and the franchisee have obligations regarding the confidentiality of information. Specifically, both parties agree to comply with each other's reasonable requirements concerning confidentiality.
The franchisee is explicitly prohibited from disclosing information pertaining to Holiday's marketing and reservation programs that has not yet been disclosed to the public without Holiday's written permission. This protects Holiday's strategies and non-public information from being leaked to competitors or otherwise misused.
Additionally, Even Hotels requires that any management agreement between the franchisee and a management company includes a provision that the management company will keep the confidentiality of trade secrets. The FDD also states that the EVEN® Hotels Brand Standards are confidential and remain Holiday's property, protected by applicable copyright laws. This extends the confidentiality obligations to any third-party management companies the franchisee may engage, ensuring a consistent level of protection for Even Hotels' sensitive information.