Under the Even Hotels franchise agreement, what obligation of confidentiality must the recipient's employees and service providers have?

According to Even Hotels' 2025 Franchise Disclosure Document, a party receiving confidential information from Even Hotels must limit access to the Discloser's Confidential Information to the Recipient's employees and service providers who have an obligation of confidentiality to Recipient that is similar to Recipient's confidentiality obligations to Discloser. These individuals must also have a need to know the Discloser's Confidential Information in connection with the Agreement.

This means that if you, as an Even Hotels franchisee, receive confidential information from the franchisor, you can only share it with your employees and service providers if they are bound by confidentiality agreements that are substantially similar to the confidentiality obligations you have with Even Hotels. Furthermore, these employees and service providers must have a legitimate need to access the information in order to fulfill their duties related to the franchise agreement.

The requirement ensures that sensitive business information of Even Hotels is protected from unauthorized disclosure or use. The franchisee must ensure that their employees and service providers understand and adhere to these confidentiality obligations. This is a fairly standard practice in franchising, as franchisors need to protect their proprietary information and trade secrets.

It is important for prospective Even Hotels franchisees to carefully review the definition of "Confidential Information" in the franchise agreement to fully understand the scope of information that is subject to these confidentiality obligations. Franchisees should also establish clear internal policies and procedures to ensure compliance with these requirements and to prevent any unauthorized disclosure of confidential information by their employees or service providers.