What documentation must an Engel & Volkers franchisee provide to the franchisor regarding non-disclosure agreements?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee or any of its owners wish to solicit, offer, or discuss the assignment of any equity or economic interest in Franchisee or assets of its business to a third party (whether by stock sale, asset sale, merger, operation of law or otherwise), Franchisee shall use its best efforts and shall employ reasonable security measures, including having any third parties who are to be presented with Confidential Information sign appropriate nondisclosure agreements which are acceptable to Franchisor, to prevent any unauthorized disclosure of or access to the Proprietary Information and shall immediately advise Franchisor of any information it has or receives of any unauthorized disclosure or access. Franchisee shall provide copies of all such non-disclosure agreements to Franchisor upon request.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, if a franchisee intends to sell any equity or assets of their business to a third party, they must ensure that these third parties sign non-disclosure agreements that are acceptable to Engel & Volkers to protect proprietary information.
Specifically, the franchisee is required to provide copies of all such non-disclosure agreements to Engel & Volkers upon request. This requirement ensures that Engel & Volkers maintains control over the dissemination of its confidential and proprietary information, even during potential business transitions.
This is a fairly standard practice in franchising, as franchisors need to protect their brand and system. The franchisee's responsibility to provide these documents ensures that Engel & Volkers can verify that adequate measures are in place to prevent unauthorized disclosure of sensitive information during a potential sale or transfer of the franchise.