Is an Engel & Volkers franchisee allowed to disclose the existence or provisions of the Administrative Location Addendum?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7. Confidentiality**.** Franchisee covenants and agrees to keep the existence of this Administrative Location Addendum and its provisions secret and confidential and not to disclose same to anyone else, except to Franchisee's advisers, and only if necessary for the efficient and proper operation of the franchised business, or except as part of an assignment that is approved by Franchisor. In the event Franchisee breaches this provision, this Administrative Location Addendum, or any part thereof, shall be at the election of the Franchisor, be null and void and such benefits accruing to Franchisee shall thereupon terminate.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, franchisees are generally prohibited from disclosing the existence or provisions of the Administrative Location Addendum. The addendum includes a confidentiality clause that requires franchisees to keep the terms of the addendum secret and confidential. This restriction extends to disclosing the information to anyone, with limited exceptions.
There are exceptions to this confidentiality requirement. An Engel & Volkers franchisee may disclose the existence and provisions of the Administrative Location Addendum to their advisors, but only if it is necessary for the efficient and proper operation of the franchised business. Disclosure is also permitted as part of an assignment that has been approved by Engel & Volkers.
If a franchisee breaches the confidentiality provision, Engel & Volkers has the right to void the Administrative Location Addendum. If Engel & Volkers chooses to void the addendum, all benefits accruing to the franchisee under the addendum will immediately terminate. This underscores the importance of adhering to the confidentiality requirements outlined in the agreement.