Does the recipient acquire any interest in the Confidential Information learned from Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Recipient acknowledges and agrees that all Confidential Information they receive from Franchisor is confidential and proprietary information and trade secrets in which Franchisor has a proprietary interest. "Confidential Information" includes, by way of example, but not limitation, all business and operational secrets and all information received by Franchisee, either directly or indirectly, with respect to the ENGEL & VÖLKERS System, including that contained in the Integrated Product Suite provided pursuant to Section 7 of the Franchise Agreement, and from the know-how conveyed to Franchisee in the System Documentation. Recipient will not acquire any interest in the Confidential Information learned by Recipient other than the right for Recipient to utilize the same in connection with evaluating whether Recipient desires to directly or indirectly enter into a franchise relationship with Franchisor and the use or duplication of the Confidential Information in any other business or capacity will constitute an unfair method of competition with Franchisor or its affiliates and Franchisor's other franchisees.
Source: Item 23 — RECEIPTS (FDD pages 88–302)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a recipient evaluating a franchise opportunity does not acquire any ownership interest in the confidential information they receive. The document specifies that the recipient's rights are limited to using the information solely to assess whether to enter into a franchise relationship with Engel & Volkers. Any other use or duplication of the confidential information is considered unfair competition.
This means a prospective Engel & Volkers franchisee cannot use the confidential information, such as business operation secrets or the contents of the Integrated Product Suite, for any purpose other than evaluating the franchise opportunity. This restriction is in place to protect Engel & Volkers' proprietary information and maintain a fair competitive environment among its franchisees.
The confidentiality agreement emphasizes that Engel & Volkers retains full ownership and control over its confidential information. Even after reviewing the information, the recipient's obligation to maintain confidentiality survives, regardless of whether they decide to become a franchisee. This ensures that sensitive business data remains protected, even if the recipient chooses not to pursue the franchise opportunity. This is a fairly standard practice in franchising, as franchisors need to protect their intellectual property and trade secrets.