Is an Engel & Volkers franchisee required to adopt and implement 'Security Measures' to secure the confidentiality of 'Financial Information'?

• 26.11.6 Franchisee must, if required by law to do so, comply with all federal and state information data privacy and data security laws and regulations that may be applicable to the franchised Business and the information that the franchised Business collects from its customers and prospective customers, Sales Advisors, staff members and other third parties, including data protection laws, laws regulating marketing communications, and information security regulations (all such laws and regulations, hereinafter called "Information Privacy Laws"). Without limiting the generality of the foregoing, this may include:
  • i. adopting and implementing adequate measures (hereinafter called "Security Measures") to secure the confidentiality of all financial, personal and other sensitive information Franchisee collects from its customers and prospective customers, Sales Advisors, staff members and other third parties (hereinafter called "Financial Information");
  • ii. providing customers and prospective customers, Sales Advisors, staff members and other third parties with written notice of the ENGEL & VÖLKERS System's privacy policies and the uses to be made of Financial Information by Franchisee, and by Franchisor and its affiliates and the other businesses and companies to whom they respectively may disclose Financial Information (hereinafter called the "Privacy Policy Notice");
  • iii. providing customers and prospective customers, Sales Advisors, staff members and other third parties with prior written notice of disclosure of any Financial Information collected from them (hereinafter called "Disclosure Notice"); and
  • iv. providing customers and prospective customers, Sales Advisors, staff members and other third parties with notice of any "opt-out" rights regarding such disclosures and uses of their Financial Information and an adequate opportunity to exercise such rights (hereinafter called "Opt-Out Notice").

From time to time, Franchisor may formulate policies and practices concerning Security Measures, the form, content, and manner of delivering

Privacy Policy Notices, Disclosure Notices, and Opt-Out notices, as well as matters relating or incidental thereto. Franchisee must adopt and implement all such policies and practices in accordance with written instructions in a timely manner.

Source: Item 22 — CONTRACTS (FDD page 88)