According to Engel & Volkers, where are agreements between the franchisee and Engel & Volkers recorded?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall maintain, in an organized and complete fashion, all such reports, as well as written business, accounting, tax, sales, and financial records of its business in accordance with best practices in the industry.
13.2 Inspections and Certifications: Franchisor and Franchisee agree that it is essential to preserve the standards and uniformity of the ENGEL & VÖLKERS System. Consequently, Franchisee hereby grants Franchisor or its appointed agents the right to perform audits of its office organization, accounting procedures, and other aspects of the Residential Real Estate Brokerage at reasonable times during normal business hours, with or without prior notice to Franchisee, and at the same time to allow inspection of its business documents for the purpose of verifying compliance with the standards and quality required under this Agreement and adherence to those elements of the ENGEL & VÖLKERS System that relate to Franchisee providing residential real estate services under this Agreement. Franchisor shall be entitled to appoint third parties, in particular accountants, to exercise these inspection rights. Franchisor has the right to have Franchisee's books and records
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are required to maintain organized and complete records of their business. This includes all reports, as well as written business, accounting, tax, sales, and financial records, adhering to the best practices in the industry.
Engel & Volkers retains the right to audit a franchisee's office organization, accounting procedures, and other aspects of the Residential Real Estate Brokerage. These audits can occur at reasonable times during normal business hours, with or without prior notice. Franchisees must allow inspection of their business documents to verify compliance with the standards and quality required under the Franchise Agreement and adherence to the Engel & Volkers System. Engel & Volkers can appoint third parties, including accountants, to conduct these inspections and review the franchisee's books and records.
The FDD specifies that franchisees must maintain financial records as required by Section 13 of the agreement. Failure to maintain these records, knowingly concealing revenues, maintaining false books, falsifying information, or submitting substantially false reports to Engel & Volkers are grounds for default. Refusal to allow Engel & Volkers to inspect or audit the franchised business is also a cause for default. In case of any doubt, the master version of the System Documentation kept at the Engel & Volkers' head office shall take precedence, control and prevail.