What is the Engel & Volkers franchisee required to disclose regarding pending or threatened legal actions?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to immediately (but not later than forty-eight (48) hours, unless sooner required under applicable laws) notify in writing Franchisor if Franchisee becomes aware of any actual compromise of system security or data integrity that has led to, or is likely to lead to, the actual destruction, loss, alteration, unauthorized disclosure of, or access to any financial, personal, and other sensitive information protected by applicable Information Privacy Laws ("Security Incident"). Franchisee further agrees to cooperate with Franchisor and any governmental authorities in taking all reasonable actions necessary to investigate and respond to the Security Incident. Franchisor agrees to notify Franchisee without undue delay and, as may be appropriate, will provide information relating to the Security Incident if and as it becomes known to Franchisor. Franchisor and Franchisee will also take reasonable steps to mitigate and, where possible, to remedy the effects of, any Security Incident, and shall coordinate regarding any notifications to regulators, law enforcement, affected individuals and the press related to any Security Incident.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
Based on the 2025 Engel & Volkers Franchise Disclosure Document, franchisees are required to inform the franchisor in writing if they become aware of any compromise of system security or data integrity that leads to unauthorized access or disclosure of sensitive information. This notification must occur immediately, but no later than 48 hours, unless applicable laws require a quicker response.
This obligation extends to financial, personal, and other sensitive information protected by Information Privacy Laws. The franchisee must cooperate with Engel & Volkers and any governmental authorities to investigate and respond to such security incidents. Engel & Volkers also agrees to notify the franchisee without undue delay if they become aware of any related security incidents and will provide relevant information as it becomes available.
Both Engel & Volkers and the franchisee are expected to take reasonable steps to mitigate and remedy the effects of any security incident. They must also coordinate any notifications to regulators, law enforcement, affected individuals, and the press related to the incident. This ensures a coordinated and compliant response to protect sensitive data and maintain the integrity of the Engel & Volkers system.