What are the restrictions on disclosing price information related to the Even Hotels Participation Agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Confidentiality. In consideration of Supplier and Participating Property disclosing to each other the confidential information about the prices of goods and services negotiated by IHG with Supplier and other confidential information pertaining to this Participation Agreement, the Participating Property agrees:
- Not to use, disclose, share, or otherwise disseminate any information related to this Participation Agreement, including the confidential price information, for any purpose whatsoever other than strictly for the purpose of this Participation Agreement;
- To disclose the price information only to those of its personnel who need access to the same for the purpose of this Participation Agreement, and otherwise to keep the prices and all confidential information strictly confidential and not permit any person access thereto;
- c. Not to make any copies of documentation relating to this Participation Agreement, including price information, except strictly for the purpose of and to the extent necessary for the purpose of this Participation Agreement;
- d. Upon termination of this Participation Agreement to return to Supplier and IHG all documentation relating hereto, including pricing information, in the possession or control of the Participating Property (including recipient personnel) and any copies of the information except for such copies as shall be required for Participating
Property's taxation or accounting records or as otherwise required by law;
e.
Participating Property shall ensure that its affiliated companies comply with the provisions of this Section 6.
THE BREACH BY PARTICIPATING OWNER OF THIS SECTION 6 SHALL BE DEEMED A MATERIAL BREACH OF THIS PARTICIPATION AGREEMENT INCAPABLE OF REMEDY ON THE PART OF PARTICIPATING PROPERTY;
- f.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are subject to strict confidentiality obligations regarding the pricing of goods and services negotiated by IHG (InterContinental Hotels Group) with suppliers, as well as other confidential information related to the Participation Agreement. As a Participating Property, franchisees must not use, disclose, share, or disseminate any information related to the Participation Agreement, including confidential price information, for any purpose other than what is strictly necessary for the Participation Agreement itself.
Disclosure of price information is limited to only those personnel who require access for the purpose of fulfilling the Participation Agreement. Franchisees must keep prices and all confidential information strictly confidential, preventing unauthorized access. Making copies of documentation, including price information, is prohibited unless strictly necessary for the agreement's purpose. Upon termination of the Participation Agreement, all documentation, including pricing information, must be returned to the supplier and IHG, except for copies required for taxation or accounting records, or as otherwise required by law.
Even Hotels franchisees must ensure that their affiliated companies also comply with these confidentiality provisions. A breach of these confidentiality obligations is considered a material breach of the Participation Agreement that cannot be remedied. This stringent confidentiality clause underscores the importance IHG places on maintaining its negotiated pricing and proprietary information within the Even Hotels system.
This level of confidentiality is common in franchising to protect the franchisor's competitive advantage and negotiated supplier agreements. Prospective Even Hotels franchisees should carefully consider these restrictions and ensure they have systems in place to comply with these requirements to avoid potential breaches of the Participation Agreement.