Under what condition does the Engel & Volkers franchisee have no confidentiality obligations regarding Proprietary Information?

According to Engel & Volkers' 2025 Franchise Disclosure Document, an Engel & Volkers franchisee has no confidentiality obligations regarding proprietary information if that information becomes part of the public domain through no breach of any confidentiality obligation of any person. This means that if the information is already publicly available or becomes publicly available without any violation of confidentiality by the franchisee or anyone else, the franchisee is not bound to keep that specific information confidential.

This exception is important for prospective Engel & Volkers franchisees because it clarifies the scope of their confidentiality obligations. It ensures that franchisees are not held liable for information that is already known to the public through legitimate means. However, it also emphasizes that franchisees must not be the cause of the information becoming public; any breach of confidentiality on their part would negate this exception.

This type of clause is fairly standard in franchise agreements, as it protects the franchisor's proprietary information while also recognizing that some information may inevitably become public knowledge. Engel & Volkers franchisees should be aware of this provision and ensure they understand their obligations to protect confidential information, as any breach could have serious consequences, as Engel & Volkers retains the right to seek injunctive relief in the event of a breach.