Are managers of the Engel & Volkers Franchisee required to sign the Confidentiality Agreement?

According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must ensure that their managers sign the Engel & Volkers' form of Confidentiality Agreement and Covenant Not to Compete. This requirement extends not only to managers but also to shareholders, partners, members, officers, directors, staff members, and Sales Advisors. The purpose is to protect the confidential business and operational information related to the Engel & Volölkers system.

This confidentiality undertaking is crucial for maintaining the integrity of the Engel & Volkers system. The FDD defines "Confidential Information" broadly, including systems of operation, programs, services, products, customer lists, manuals, software, marketing strategies, and more. By requiring managers to sign the agreement, Engel & Volkers aims to prevent the unauthorized disclosure of this information to third parties, which could harm the brand's competitive advantage.

For a prospective Engel & Volkers franchisee, this means they must implement a system to ensure all relevant personnel execute the required confidentiality agreements. This includes providing the agreement, collecting signatures, and maintaining records of compliance. Failure to enforce this requirement could result in a breach of the franchise agreement and potential legal consequences. Franchisees should also ensure that their staff understands the scope of the confidential information and their obligations to protect it.

This requirement is fairly standard in the franchise industry, as franchisors need to protect their proprietary information and trade secrets. Prospective franchisees should carefully review the confidentiality agreement to understand its scope and ensure they can comply with its terms. They should also factor in the administrative burden of managing these agreements when assessing the overall cost and effort of operating an Engel & Volkers franchise.