Is an Engel & Volkers franchisee required to obtain non-disclosure agreements from licensed users of 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 responsible for ensuring that only licensed users have access to the Licensed Materials, which include the proprietary Integrated Product Suite and information technology. When employees or sales advisors are terminated, their access rights to these Licensed Materials must be discontinued. Franchisees must maintain the secrecy and confidentiality of the proprietary information related to the Licensed Materials and prevent unauthorized disclosure or access.
The FDD states that franchisees must employ reasonable security measures to prevent unauthorized disclosure or access to proprietary information related to the Licensed Materials. These measures "may include obtaining suitable non-disclosure agreements from the licensed users." This indicates that while non-disclosure agreements are not explicitly mandated, they are presented as a potential method for maintaining confidentiality and preventing unauthorized use of the Licensed Materials.
In practice, this means that Engel & Volkers franchisees have some discretion in how they secure the Licensed Materials, but they are ultimately responsible for their protection. The decision to use non-disclosure agreements will likely depend on the franchisee's specific circumstances, such as the size of their team, the nature of their business, and the level of risk they are willing to accept. It is crucial for prospective franchisees to carefully consider the implications of this requirement and to consult with legal counsel to determine the best course of action for their individual situation.