According to the Engel & Volkers agreement, what is the Recipient's location used for?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4 The Franchisee: Franchisee wishes to be franchised the right to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage and franchised business under this Agreement (the franchised "Business") at and only at the approved location specified in Appendix 1 (hereinafter called the "Approved Location"). If, as of the date of this Agreement, the Approved Location has not yet been determined, then it shall thereafter be determined in accordance with Section 3.1 and, upon determination, inserted into Appendix 1. Franchisor is prepared to grant Franchisee, at its request, a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location and to use commercially reasonable efforts to support Franchisee.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the franchisee's approved location is where they are authorized to operate a residential real estate brokerage under the Engel & Volkers system. The franchise agreement specifies that the franchisee can only conduct business at this approved location, which is detailed in Appendix 1 of the agreement. If the location is not determined when the agreement is signed, it will be determined later according to Section 3.1 and then added to Appendix 1.
This means that an Engel & Volkers franchisee's rights to operate are tied to a specific, pre-approved physical location. Franchisees cannot simply move their business or operate from multiple locations without formal approval from Engel & Volkers. This location restriction is a standard practice in franchising, allowing Engel & Volkers to manage market saturation and protect other franchisees' territories.
Engel & Volkers also retains rights not specifically granted to the franchisee. This includes the right to operate or franchise a real estate brokerage under the Engel & Volkers trademarks outside the franchisee's protected area. Engel & Volkers can also operate a commercial real estate brokerage inside the protected area, except for the limited commercial services the franchisee is permitted to offer. This ensures that Engel & Volkers can continue to expand and adapt its business model without being overly restricted by individual franchise agreements.