Who is responsible for breaches of confidentiality by an Even Hotels franchisee's agents, affiliates, and recipients?

According to Even Hotels' 2025 Franchise Disclosure Document, the franchisee ('Hotel') is responsible for breaches of confidentiality. Specifically, the franchisee is liable if their agents, affiliates, or any third parties to whom they disclose confidential information (referred to as "Recipients") violate the confidentiality terms outlined in the agreement.

This means that if an Even Hotels franchisee shares confidential information with an employee, contractor, or any other party, and that party breaches the confidentiality agreement, the franchisee will be held accountable. This responsibility extends to ensuring that these parties are contractually bound by confidentiality obligations that are at least as protective as those in the franchise agreement.

This obligation applies to confidential information that does not constitute a trade secret for three years after the agreement terminates or expires. For information that is considered a trade secret, the confidentiality obligations continue until the information no longer qualifies as a trade secret under applicable law. The franchisee must also certify in writing to IHG that they, their affiliates, agents, and recipients have complied with these confidentiality obligations.

This requirement places a significant burden on Even Hotels franchisees to carefully manage and monitor the handling of confidential information by anyone they share it with. Franchisees must implement robust procedures and controls to prevent unauthorized disclosure and ensure all parties understand and adhere to the confidentiality terms.