What are some examples of site selection criteria that The Standardx considers Confidential Information?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates possess (and will continue to develop and acquire) Confidential Information, some of which constitutes trade secrets under applicable law, relating to developing and operating Brand Hotels. "Confidential Information" includes: (1) site selection criteria; (2) the substance, design, and construction of Brand Hotels and the Design and Construction Standards; (3) training and operations materials and modules; (4) methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge, and experience used in developing and operating Brand Hotels; (5) marketing, advertising and promotional programs for Brand Hotels; (6) Guest Information (defined below) and any information and data relating to guests and customers of other Brand Hotels and/or other Hyatt Network Hotels; (7) knowledge of specifications for and suppliers of FF&E and other products and supplies that are uniquely identified with Brand Hotels and/or other Hyatt Network Hotels; (8) any part of the Technology System and other computer software or other technology that is proprietary to us, our affiliates or the Hotel System, including digital passwords and identifications and any source code of, and data, reports, and other printed materials generated by, the software or other technology; (9) knowledge of the operating results and financial performance of Brand Hotels other than the Hotel; (10) graphic designs and related intellectual property; and (11) any negotiated provisions of the Franchise Agreement and any other agreements we sign with you.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 68–71)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, site selection criteria are considered Confidential Information. The FDD specifies that franchisees must keep confidential all information concerning development plans for particular sites or markets. This obligation begins during the evaluation period of a potential franchise relationship and continues even if a Franchise Agreement is not signed.
This means that prospective franchisees are bound by a Confidentiality Agreement early in the process, restricting them from sharing or using The Standardx's site selection methods. This is a common practice in franchising, as site selection is crucial to a hotel's success, and franchisors want to protect their expertise. The franchisee must also ensure that their employees, agents, and advisors also comply with these confidentiality restrictions.
In addition to site selection criteria, The Standardx considers a broad range of information as confidential, including the design and construction of Brand Hotels, training and operations materials, marketing programs, guest information, knowledge of suppliers, technology systems, operating results, graphic designs, and the negotiated provisions of the Franchise Agreement. This extensive definition of Confidential Information highlights the importance The Standardx places on protecting its proprietary knowledge and systems.