Upon expiration or termination of the Engel & Volkers Franchise Agreement, what must the franchisee do with the confidential information?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
n the event of a breach of Section 15 by Franchisee, Franchisee 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. Franchisee agrees that the award of equitable remedies to Franchisor in the event of such breach is reasonable and necessary for the protection of the business and goodwill of Franchisor.
- 15.4 No Duplication. Except as authorized in this Agreement, Franchisee agrees never to copy, duplicate, record or otherwise reproduce any of the Confidential Information, in whole or in part; otherwise share it with any other third party individual or entity; or, otherwise make it available to any third party by any other means whatsoever. Upon the expiration or termination of this Agreement, Franchisee agrees to return to Franchisor such Confidential Information as Franchisor requests (including training materials and other instructional content; financial and non-financial books and records; the System Documentation;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, after the termination or expiration of the Franchise Agreement, the franchisee is obligated to handle confidential information in a specific manner. The franchisee must return to Engel & Volkers all confidential information that Engel & Volkers requests, including training materials, instructional content, financial and non-financial records, system documentation, computer databases, software, and manuals that are in the franchisee's possession.
Alternatively, if Engel & Volkers requests, the franchisee must destroy all or certain confidential information and provide certification of such destruction to Engel & Volkers. These obligations regarding confidentiality extend beyond the term of the Franchise Agreement. The FDD specifies that the franchisee must also immediately cease using the Engel & Volkers system, including trademarks and confidential information upon termination or expiration of the agreement.
This requirement ensures that Engel & Volkers maintains control over its proprietary information and prevents former franchisees from using it to compete unfairly. It is a standard practice in franchising to protect the brand's intellectual property and maintain consistency across the franchise network. Franchisees should be aware of these obligations and ensure they have procedures in place to comply with them upon termination or expiration of their agreement.