What is the role of shareholders in relation to the Engel & Volkers Confidentiality Agreement?

According to Engel & Volkers' 2025 Franchise Disclosure Document, shareholders of a franchisee company have specific obligations regarding confidential information. Engel & Volkers requires franchisees to ensure that their shareholders, along with partners, members, officers, directors, managers, staff members, and Sales Advisors, agree to maintain the confidentiality of the brand's proprietary information. This is achieved by having these individuals execute Engel & Volkers' standard Confidentiality Agreement and Covenant Not to Compete. This agreement ensures that all parties with access to Engel & Volkers' confidential information are legally bound to protect it.

The Confidentiality Agreement is a critical component of the franchise agreement, as it protects Engel & Volkers' business and operational information, including the contents of the Integrated Product Suite and the know-how detailed in the System Documentation. This information is considered 'Confidential Information' and must not be disclosed to any third party. The agreement also restricts the use of this information in connection with any generative, artificial intelligence tool or program, as this is considered a disclosure to a third party and a breach of the agreement.

This requirement ensures that all individuals with access to Engel & Volkers' sensitive business data are aware of their responsibilities and are legally obligated to protect that information. For a prospective franchisee, this means they must ensure that all relevant parties within their organization, including shareholders, sign the required agreements to maintain confidentiality and prevent competition. This is a standard practice in franchising, as franchisors need to protect their intellectual property and business methods.