What is the Engel & Volkers franchisee required to do regarding providing copies of non-disclosure agreements to the franchisor?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee or any of its owners wish to solicit, offer, or discuss the assignment of any equity or economic interest in Franchisee or assets of its business to a third party (whether by stock sale, asset sale, merger, operation of law or otherwise), Franchisee shall use its best efforts and shall employ reasonable security measures, including having any third parties who are to be presented with Confidential Information sign appropriate nondisclosure agreements which are acceptable to Franchisor, to prevent any unauthorized disclosure of or access to the Proprietary Information and shall immediately advise Franchisor of any information it has or receives of any unauthorized disclosure or access. Franchisee shall provide copies of all such non-disclosure agreements to Franchisor upon request.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, if a franchisee plans to solicit, offer, or discuss assigning any equity or economic interest in the franchise or its assets to a third party, they must take specific steps to protect Engel & Volkers' confidential information. This includes employing reasonable security measures, such as ensuring that any third parties who receive confidential information sign non-disclosure agreements acceptable to Engel & Volkers. The franchisee must also promptly inform Engel & Volkers of any unauthorized disclosure or access to proprietary information.
Specifically, the Engel & Volkers franchisee is required to provide copies of all non-disclosure agreements related to the potential sale of the franchise to the franchisor upon request. This allows Engel & Volkers to monitor and enforce the protection of its proprietary information during the transfer process.
This requirement ensures that Engel & Volkers maintains control over its confidential information and can assess the adequacy of the non-disclosure agreements. It also allows Engel & Volkers to be informed about potential breaches of confidentiality, enabling them to take appropriate action to protect their interests. This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and other confidential information when a franchise changes hands.