What must an Engel & Volkers franchisee keep secret and confidential regarding the Licensed Materials?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement you will sign with us, you will be granted a license to use our proprietary Integrated Product Suite and information technology ("Licensed Materials"). You must ensure that only licensed users use or have access to the Licensed Materials. If your employees or sales advisors are terminated, you must discontinue their access rights to the Licensed Materials. You must keep secret and confidential, and not disclose, the proprietary information related to the Licensed Materials. You have to employ reasonable security measures to prevent unauthorized disclosure or access to that proprietary information, which may include obtaining suitable non-disclosure agreements from the licensed users.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 59–61)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees are granted a license to use the franchisor's proprietary Integrated Product Suite and information technology, referred to as "Licensed Materials." Engel & Volkers requires franchisees to ensure that only licensed users have access to and use these Licensed Materials. If employees or sales advisors are terminated, the franchisee must immediately discontinue their access rights.
The FDD emphasizes that franchisees must maintain the secrecy and confidentiality of proprietary information related to the Licensed Materials. This means franchisees cannot disclose this information to unauthorized parties. To prevent unauthorized access or disclosure, franchisees must implement reasonable security measures, which may include obtaining non-disclosure agreements from licensed users.
This confidentiality requirement is a standard practice in franchising, as it protects the franchisor's intellectual property and competitive advantage. Prospective Engel & Volkers franchisees should carefully consider the implications of this obligation, ensuring they have the resources and systems in place to safeguard the Licensed Materials and proprietary information. Failure to comply with these confidentiality requirements could result in legal action or termination of the franchise agreement.