What are the franchisee's obligations regarding the confidentiality of Sonesta Simply Suites' Confidential Information?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Confidentiality of this Agreement. The Franchisee Parties agree that the existence of this Agreement and its terms are strictly confidential and that, therefore, the Franchisee Parties and the other Releasing Parties shall not provide or disclose to any third party, unless authorized in writing to do so by us or properly directed or ordered to do so by public authority, any information regarding the existence of this Agreement, the terms or conditions contained in this Agreement, or any dealings or negotiations with us or any of the Released Parties related to this Agreement.
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- Non-Disparagement. Franchisee Parties agree not to disparage or otherwise speak or write negatively, directly or indirectly, of us or any of the Released Parties, the Sonesta Simply Suites brand, the Sonesta Simply Suites franchise system, or any other service-marked or trademarked concept of ours or of any Released Party, or which would subject the Sonesta Simply Suites brand to ridicule, scandal, reproach, scorn, or indignity or which would negatively impact our goodwill or that of the Sonesta Simply Suites brand.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites FDD, franchisees are obligated to maintain the confidentiality of the Franchise Agreement's existence and terms. Franchisees and related parties cannot disclose any information about the agreement, its terms, conditions, or any dealings or negotiations with Sonesta Simply Suites to any third party unless Sonesta Simply Suites provides written authorization or a public authority legally mandates the disclosure. This confidentiality clause is designed to protect Sonesta Simply Suites' proprietary information and business strategies.
In addition to maintaining confidentiality about the Franchise Agreement, franchisees must not disparage Sonesta Simply Suites, its brand, or franchise system. This includes refraining from any negative comments or writings that could harm the brand's reputation or goodwill. This provision ensures that franchisees do not undermine the brand they are a part of, which could negatively impact the entire franchise network.
The FDD also states that any unauthorized use of Sonesta Simply Suites' trademarks is considered a material breach of the Franchise Agreement. Franchisees cannot use the trademarks in any unauthorized manner, including in their corporate name or online presence, without written consent from Sonesta Simply Suites. Furthermore, franchisees cannot create any derivative works from the brand standards or confidential information without approval, and if approved, these derivative works become the property of Sonesta Simply Suites. These measures protect the brand's intellectual property and maintain consistency across all franchise locations.