Can adaptations and modifications to the Engel & Volkers system obligate the franchisee to invest additional capital or incur higher operating costs?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
teria and that Franchisor may make adaptations and modifications to the ENGEL & VÖLKERS System related to such programs and designations. Franchisee further acknowledges and agrees that entering into this Agreement does not require Franchisor to make adaptations and modifications to the ENGEL & VÖLKERS System related to such programs and designations available to Franchisee, or entitle Franchisee to participate in such programs or obtain such designations. Franchisee will not have the right to require Franchisor to disclose any such program, designation, or variation or to
grant the same or a similar variation to Franchisee. 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.
- 12.1.2 Franchisor will inform Franchisee of any exclusive cooperation arrangements entered into by Franchisor with services companies, e.g., providing for financial services, such as banks, insurance companies or other vendors offering services tailored for use by real estate professionals.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers may adapt their system to suit specific market conditions, business potential, or other factors they deem important for the franchisee's success. These adaptations and modifications may require the franchisee to invest additional capital or incur higher operating costs. This means that as the Engel & Volkers system evolves, franchisees may need to spend more money to keep their business aligned with the brand's standards and practices.
Engel & Volkers also has the right to add or delete any tools, web-based technology and software that make up the Integrated Product Suite or any part thereof, and to amend and modify such tools, technology and software as well as the terms for their usage. Franchisee agrees that it shall adopt any changes or modifications to the Integrated Product Suite and abide by those reasonable modified or new standards established by Franchisor at its sole cost.
Prospective franchisees should consider the potential for these additional costs when evaluating the Engel & Volkers franchise opportunity. It would be prudent to inquire about the types of adaptations or modifications that have been implemented in the past, their associated costs, and how frequently such changes are typically required. Understanding these factors can help a franchisee better prepare for the financial demands of maintaining an Engel & Volkers franchise.