Does Engel & Volkers consider the use of confidential information in connection with any generative, artificial intelligence tool or program a breach of the agreement?

According to Engel & Volkers' 2025 Franchise Disclosure Document, using confidential information with generative AI tools is a breach of the agreement. The document specifies that the recipient of confidential information agrees that using this information in connection with any generative, artificial intelligence tool or program is considered a disclosure to a third party, which violates the confidentiality agreement.

This means that prospective Engel & Volkers franchisees must be extremely careful about how they handle confidential information provided by Engel & Volkers during their evaluation of the franchise opportunity. Inputting such information into AI tools, even for seemingly harmless purposes, could have legal ramifications. The agreement emphasizes that maintaining absolute confidentiality is a strict requirement.

Engel & Volkers also states that they will suffer irreparable injury if a recipient discloses or misuses confidential information. This highlights the seriousness with which Engel & Volkers views the protection of its proprietary information and the potential legal actions they may take in case of a breach. Franchisees must ensure they fully understand what constitutes confidential information and how to properly safeguard it.

This clause reflects a growing concern among franchisors regarding the use of AI and the potential for confidential information to be exposed or misused. Prospective franchisees should seek clarification from Engel & Volkers on what specific types of information are considered confidential and what measures they should take to ensure compliance with this provision.