Does Engel & Volkers require a bond to be posted for interim relief in the event of a breach of the agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Recipient acknowledges and agrees that Engel & Völkers will suffer irreparable injury not capable of precise measurement in monetary damages if Recipient discloses or misuses any Confidential Information.
Accordingly, in the event of a breach of this Agreement by Recipient, Recipient consents to entry of interim relief, including, without limitation, the entry of a temporary restraining order, preliminary injunction, permanent injunction, writ of attachment, appointment of a receiver, and any other equitable relief which the court deems necessary in order to prevent irreparable injury, all without the requirement that bond be posted.
Source: Item 23 — RECEIPTS (FDD pages 88–302)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, in the event of a breach of the agreement by the recipient (prospective franchisee), Engel & Volkers does not require a bond to be posted for interim relief. This waiver of bond requirement applies to various forms of interim relief, including temporary restraining orders, preliminary injunctions, permanent injunctions, writs of attachment, and the appointment of a receiver. This provision is tied to the acknowledgment that Engel & Volkers would suffer irreparable injury if confidential information is disclosed or misused.
This means that if a prospective Engel & Volkers franchisee breaches the confidentiality agreement, Engel & Volkers can seek immediate legal remedies without having to post a bond. A bond is typically required by courts to protect the defendant (the franchisee in this case) in case the injunction or other relief is later found to be unwarranted. By waiving this requirement, Engel & Volkers streamlines the process of obtaining immediate relief and reduces its upfront costs in pursuing legal action.
For a prospective Engel & Volkers franchisee, this clause highlights the importance of protecting the franchisor's confidential information. Any misuse or disclosure could lead to immediate legal action without the protection of a bond, potentially increasing the financial risk to the franchisee if they are found in breach. This is a fairly standard practice in franchising, as franchisors heavily rely on protecting their trade secrets and operational methods.