Who can an Engel & Volkers franchisee disclose the Administrative Location Addendum and its provisions to?
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 Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee is generally required to keep the Administrative Location Addendum and its provisions secret and confidential. However, there are specific exceptions to this rule.
The Engel & Volkers franchisee can disclose the Administrative Location Addendum and its provisions to their advisors, but only if it is necessary for the efficient and proper operation of the franchised business. This implies that the advisors need to have a legitimate reason to know the details of the addendum in order to assist the franchisee effectively.
Additionally, disclosure is permitted as part of an assignment that is approved by Engel & Volkers. This means that if the franchisee is selling or transferring their franchise, and Engel & Volkers approves the transaction, the Administrative Location Addendum can be shared with the potential new franchisee. However, breaching the confidentiality provision can result in the Administrative Location Addendum becoming null and void at Engel & Volkers's discretion, potentially terminating any benefits accruing to the franchisee under that addendum.