What is the relationship between the Engel & Volkers Franchise Agreement and the Confidentiality Agreement?

According to Engel & Volkers's 2025 Franchise Disclosure Document, the Confidentiality Agreement is an integral part of the Franchise Agreement. Specifically, the Confidentiality Agreement is included as Appendix 3 to the Franchise Agreement. This means that when a franchisee signs the Franchise Agreement, they are also agreeing to the terms outlined in the Confidentiality Agreement.

The Confidentiality Agreement ensures that franchisees understand and agree to protect Engel & Volkers's confidential information, which includes business and operational secrets, information related to the Engel & Volkers System, and the know-how conveyed in the System Documentation. Franchisees are granted the right to use this information solely for operating their Engel & Volkers Residential Real Estate Brokerage during the term of the Franchise Agreement. Any unauthorized use or duplication of this information in another business is considered unfair competition.

The agreement also specifies that all confidential information received from Engel & Volkers must be used only for performing the Franchise Agreement and not in any other business. The franchisee must maintain absolute confidentiality both during and after the term of the Franchise Agreement and cannot copy or disclose the information to any third party without prior written consent from Engel & Volkers. This extends to preventing the use of confidential information with generative AI tools, which is considered a breach of the agreement. Upon termination or expiration of the Franchise Agreement, the franchisee must return all confidential information to Engel & Volkers.