What agreement must each Principal execute to evidence their obligations regarding Confidential Information and non-competition with Engel & Volkers, and where can this agreement be found in the FDD?

According to Engel & Volkers's 2025 Franchise Disclosure Document, each Principal, which includes shareholders, partners, members, officers, directors, and managers, must execute Engel & Volkers's form of Confidentiality Agreement and Covenant Not to Compete. This agreement ensures that these individuals understand and agree to maintain the confidentiality of the business and operational information they receive and that they will not compete with Engel & Volkers during or after the term of the franchise agreement. This requirement is detailed within Item 22, which covers the contracts related to the franchise agreement.

The Confidentiality Agreement and Covenant Not to Compete are crucial for protecting Engel & Volkers's proprietary information and market position. By requiring Principals to sign this agreement, Engel & Volkers aims to prevent the unauthorized disclosure of sensitive information and to restrict competitive activities that could harm the franchise system. This is a common practice in franchising, as franchisors need to safeguard their trade secrets, customer relationships, and operational methods.

For a prospective Engel & Volkers franchisee, this means that all key individuals involved in the ownership and management of the franchise must be willing to commit to these confidentiality and non-competition obligations. This requirement ensures that everyone in a leadership position is aligned with Engel & Volkers's interests and is legally bound to protect the brand's confidential information and refrain from competitive activities. Franchisees should carefully review the terms of this agreement and ensure that all Principals fully understand their obligations before investing in an Engel & Volkers franchise.