Which confidentiality obligations survive the termination of the Hawthorn Suites By Wyndham agreement?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Representations and Warranties. You and each Guarantor represent and warrant to us that: (a) you have reported the Gross Room Revenues of the Facility accurately and correctly calculated the fees due during the Term of the Franchise Agreement; (b) after the Termination Date, neither your nor any Guarantor will retain possession of any Confidential Materials we provided to you; (c) you, each Guarantor, and your respective agents have not disclosed or made unauthorized copies of any Confidential Materials in violation of the Franchise Agreement; (d) no consent of any third party is required to enter into or perform this Agreement; (e) neither your nor any Guarantor has filed a lawsuit or arbitration demand against us, our direct and indirect parent companies or affiliates; (f) neither you nor any Guarantor is the subject of any pending bankruptcy, receivership, composition, assignment, or similar proceeding; (g) you have obtained the necessary authorization to execute and perform this Agreement; and (h) the persons negotiating and executing this Agreement on your behalf have been duly authorized by your owners and your governance board to do so.
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, after the termination date, neither the franchisee nor any guarantor will retain possession of any Confidential Materials provided by Hawthorn Suites By Wyndham. Furthermore, the franchisee, each guarantor, and their respective agents must not disclose or make unauthorized copies of any Confidential Materials in violation of the Franchise Agreement.
This means that upon termination of the franchise agreement, a franchisee must return all confidential materials to Hawthorn Suites By Wyndham and ensure that no unauthorized copies are made or retained. This obligation extends not only to the franchisee but also to any guarantors and their agents, emphasizing the importance of maintaining confidentiality even after the franchise relationship ends.
These stipulations are typical in franchise agreements to protect the franchisor's proprietary information and trade secrets. Failure to comply with these confidentiality obligations could result in legal action by Hawthorn Suites By Wyndham. Franchisees should carefully review the definition of "Confidential Materials" in the franchise agreement to fully understand the scope of these obligations.