Under what condition is Engel & Volkers willing to disclose Confidential Information to the recipient?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor is disclosing the Confidential Information to Recipient solely on the condition that Recipient agree, and Recipient does hereby agree, that any Confidential Information received from Franchisor (a) shall only be used for purposes of evaluating whether Recipient desires to directly or indirectly enter into a franchise relationship with Franchisor, (b) will not be used in any other business, manner or capacity, (c) will have its absolute confidentiality maintained, (d) will not be copied without authorization, and (e) will not be disclosed to any third party without the prior written consent of Franchisor.
Recipient agrees that use of Confidential Information in connection with any generative, artificial intelligence tool or program is considered disclosure of such Confidential Information to a third party and constitutes a breach of this Agreement.
Recipient agrees to use reasonable care to prevent the disclosure of the Confidential Information to any third party, and further agrees to limit the dissemination of the Confidential Information within its own organization to individuals whose duties justify the need to know such information, and then only provided that there is a clear understanding by such individuals of their obligation to maintain the confidential status of the Confidential Information and to restrict its use solely to the purposes specified herein.
Each other person receiving the Confidential Information must also sign a copy of this Agreement.
Recipient acknowledges that no other right or license to use the Confidential Information is granted by this Agreement, and agrees that the amount of the Confidential Information to be disclosed to Recipient is completely within the discretion of Engel & Völkers.
Upon completion of its review of the Confidential Information (or sooner upon request), Recipient agrees to return to Franchisor all written materials (including all copies thereof, if any) received from Engel & Völkers or any Engel & Völkers' master franchisees or franchises.
Source: Item 23 — RECEIPTS (FDD pages 88–302)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers will only disclose Confidential Information to a recipient if the recipient agrees to specific conditions. These conditions ensure the information is used solely for evaluating a potential franchise relationship with Engel & Volkers. The recipient must agree not to use the information for any other business purposes, maintain its absolute confidentiality, avoid unauthorized copying, and refrain from disclosing it to any third party without Engel & Volkers' prior written consent.
Engel & Volkers emphasizes the importance of maintaining the confidentiality of this information, particularly with the rise of AI technology. The agreement explicitly states that using Confidential Information with any generative AI tool or program is considered a breach of the agreement, as it constitutes disclosure to a third party. This highlights the brand's concern about unauthorized dissemination of sensitive business data through modern technological means.
The recipient must also exercise reasonable care to prevent disclosure and limit dissemination within their organization to only those individuals with a justified need to know. These individuals must also understand their obligation to maintain confidentiality and restrict the information's use to the specified purposes. Furthermore, Engel & Volkers retains complete discretion over the amount of Confidential Information disclosed. Upon completing the review, the recipient must return all written materials, including copies, to Engel & Volkers or its master franchisees.
These measures are in place to protect Engel & Volkers' proprietary information and trade secrets, ensuring that potential franchisees understand the value and sensitivity of the data they are given access to during their evaluation process. This is a common practice in franchising to safeguard the brand's competitive advantage and operational methods.