What is the consequence if an Engel & Volkers franchisee breaches the confidentiality undertakings?

According to Engel & Volkers' 2025 Franchise Disclosure Document, a breach of confidentiality undertakings by a franchisee constitutes grounds for termination of the franchise agreement. Specifically, section 20.3.5 states that if a franchisee "commits a breach of the confidentiality undertakings set forth in Section 15" it can lead to the termination of the agreement.

Engel & Volkers emphasizes the importance of maintaining the confidentiality of its business and operational information, including the contents of the Integrated Product Suite and System Documentation. Franchisees are responsible for ensuring that their staff, sales advisors, shareholders, partners, members, officers, directors, and managers also adhere to these confidentiality obligations by signing a Confidentiality Agreement and Covenant Not to Compete. The FDD also specifies that using confidential information with generative AI tools is considered a breach of the agreement.

This provision highlights the critical nature of protecting Engel & Volkers' proprietary information and trade secrets. Prospective franchisees should carefully review Section 15 of the franchise agreement to fully understand the scope of the confidential information and the specific obligations related to its protection. Franchisees must implement appropriate measures to prevent unauthorized access or disclosure of confidential information, as a breach could result in the loss of their franchise.