What is the defined role of the 'Recipient' in relation to Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
, user names and passwords); Franchisor's training and other instructional programs and materials; all elements of Franchisor's recommended staffing, staff training and staff certification policies and procedures; all communications between Franchisor and Franchisee; additions or improvements to, deletions from and modifications and variations of the components of the ENGEL & VÖLKERS System and the other systems and methods of operations which Franchisor employs now or in the future; research, development and test programs for services and operations; and, all other information, knowledge and know-how which either Franchisor or their respective affiliates, now or in the future, designate as confidential.
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- Franchisor is disclosing the Confidential Information to Recipient solely on the condition that Recipient agree, and Recipient does hereby agree, that any Confidential Information received from Franchisor (a) shall only be used for purposes of performing the Franchise Agreement, (b) will not be used in any other business, manner or capacity, (c) will have its absolute confidentiality maintained both during and after the Term of the Franchise Agreement, (d) will not be copied without authorization, and (e) will not be disclosed to any third party without the prior written consent of Franchisor. Recipient agrees that use of Confidential Information in connection with any generative, artificial intelligence tool or program is considered disclosure of such Confidential Information to a third party and constitutes a breach of this Agreement. Recipient agrees to use reasonable care to prevent the disclosure of the Confidential Information to any third party, and further agrees to limit the dissemination of the Confidential Information within its own organization to individuals whose duties justify the need to know such information, and then only provided that there is a clear understanding by such individuals of their obligation to maintain the confidential status of the Confidential Information and to restrict its use solely to the purposes specified herein. Each other person receiving the Confidential Information must also sign a copy of this Agreement.
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- Recipient acknowledges that no other right or license to use the Confidential Information is granted by this Agreement, and agrees that the amount of the Confidential Information to be disclosed to Recipient is completely within the discretion of Franchisor.
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- Recipient hereby agrees to inform Franchisor of all experience gained during use of the Engel & Völkers System and the rights under the Franchise Agreement, and to allow Franchisor and other Engel & Völkers franchisees to use the know-how gained from his/her/its experience free of charge.
Recipient hereby assigns to Franchisor any such amendments or improvements to the Engel & Völkers System.
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- Upon termination or expiration of the Franchise Agreement, or earlier if requested by Franchisor, Recipient will return all Confidential Information (including any copies thereof that Franchisor may have permitted Recipient to make) to Franchisor.
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- Recipient shall be under no obligation under this Agreement with respect to any information (a) which is, at the time of the disclosure, available to the general public; (b) which becomes at a later date available to the general public through no fault of the Recipient and then only after said date; or (c) which Recipient can demonstrate was in its possession through valid means before receipt.
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- Recipient hereby undertakes not to provide residential real estate brokerage services competing with the Engel & Völkers System during the Term of this Agreement (which means the term of Recipient's employment by, ownership participation in, association with or service to Franchisee), either directly or indirectly, in an employed or a self-employed capacity, for its own account or for the account of a third party. Recipient may engage in other business activities that do not involve other competitive real estate agency services. However, all these activities must be conducted under another trade name and in a manner (including from a separate location if Franchisor, in its sole judgment, believes it is necessary) that eliminates the prospect that the public might believe the business is related to the Engel & Völkers System in any way.
In addition, during the time periods described above, Recipient agrees not to divert any business that should be handled by Franchisee and its franchised Residential Real Estate Brokerage to any other person or entity.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the 'Recipient' is defined within the context of contracts related to confidential information and non-competition agreements. The Recipient agrees to maintain the absolute confidentiality of any information received from Engel & Volkers, using it only for the purposes of performing the Franchise Agreement. The Recipient is prohibited from using the confidential information in any other business or capacity, copying it without authorization, or disclosing it to any third party without prior written consent from Engel & Volkers. Use of confidential information with AI tools is considered a breach of contract.
The Recipient must inform Engel & Volkers of all experience gained during the use of the Engel & Volkers System and allow Engel & Volkers franchisees to use the know-how gained from their experience free of charge. The Recipient also assigns any amendments or improvements to the Engel & Volkers System to the Franchisor. Upon termination or expiration of the Franchise Agreement, the Recipient must return all Confidential Information to Engel & Volkers.
Furthermore, the Recipient undertakes not to provide residential real estate brokerage services that compete with the Engel & Volkers System during the term of their employment, ownership participation, association, or service to the Franchisee. While the Recipient may engage in other business activities, these must be conducted under another trade name and in a manner that eliminates any perception that the business is related to Engel & Volkers. The Recipient also agrees not to divert any business that should be handled by the Franchisee to any other person or entity. These provisions aim to prevent both direct and indirect competition, including consultation for competitive businesses or assistance to a competitor. However, the Recipient is allowed to own up to 5% of the capital stock of a publicly held competitive business for investment purposes, provided they do not control the company.