Does Engel & Volkers include a confidentiality provision in its Franchise Agreements?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We have a confidentiality provision in our Franchise Agreements. However, during the last 3 fiscal years, no current or former franchisees have signed confidentiality clauses that restrict them from discussing with you their experiences as a franchisee in our franchise system.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 71–88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the Franchise Agreements do contain a confidentiality provision. However, it's important to note that during the last three fiscal years, Engel & Volkers has not enforced these clauses to prevent former or current franchisees from discussing their experiences with potential franchisees. This means that while a confidentiality clause exists, franchisees have not been restricted from sharing their insights about the franchise system.
This information is relevant for prospective franchisees as it provides some assurance that they can speak with current and former franchisees to gather information about the Engel & Volkers franchise opportunity. It suggests that Engel & Volkers has not actively used confidentiality clauses to silence franchisees, which can be a positive sign for transparency within the franchise system.
However, it is important to recognize that the existence of a confidentiality clause still carries potential implications. While Engel & Volkers has not enforced these clauses in the past, there is no guarantee that they will not do so in the future. Prospective franchisees should carefully review the terms of the confidentiality provision in the Franchise Agreement and seek legal counsel to fully understand their rights and obligations. It would be prudent to discuss with Engel & Volkers under what circumstances they might enforce such a clause.