Can Engel & Volkers adapt the system to the peculiarities of a particular market area?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Furthermore, Franchisor may adapt the ENGEL & VÖLKERS System to the peculiarities of a particular market area or its circumstances, business potential, population, existing business practices, any other condition which Franchisor considers important to the successful operation of Franchisee's business, or due to other events or other nonarbitrary distinctions, and whether or not they arise to the level of a force majeure event and whether or not they are foreseeable may Franchisee understands and agrees that adaptations and modifications to the ENGEL & VÖLKERS System may obligate Franchisee to invest additional capital or incur higher operating costs.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers may adapt the Engel & Volkers System to the peculiarities of a specific market area. This adaptation can be based on various factors, including the area's circumstances, business potential, population, existing business practices, or any other condition that Engel & Volkers deems important for the franchisee's successful operation. These adaptations can occur due to foreseeable or unforeseeable events.
This flexibility allows Engel & Volkers to tailor its franchise model to suit different markets, potentially increasing the likelihood of success for franchisees in diverse locations. However, franchisees should be aware that these adaptations and modifications may require additional capital investment or lead to higher operating costs. Franchisees are obligated to adhere to any changes or modifications implemented by Engel & Volkers.
Engel & Volkers also retains the right to modify the Engel & Volkers System due to changing market conditions, and franchisees are expected to implement these changes at their own expense. While Engel & Volkers will inform franchisees of any exclusive cooperation arrangements with service companies, franchisees are generally required to work exclusively with these companies unless they have legitimate commercial or financial reasons to refuse. Franchisees should also be aware that Engel & Volkers has the right to retain any commissions or event sponsorships earned through these required collaborations. Franchisees can propose their own service companies, but Engel & Volkers has the final say in approving them.