Can Engel & Volkers or its affiliates be the sole approved supplier?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor does so designate or approve a Supplier, Franchisee shall purchase the categories of products or services only from Suppliers so designated or approved by Franchisor. Franchisor, or one or more of its affiliates, may be the sole approved Supplier.
Franchisor may concentrate purchases with one or more Suppliers to obtain lower prices, better advertising support and/or better services for any group of franchisees. If Franchisee proposes to contract for or purchase products or services from any supplier that Franchisor has not previously designated or approved for such products or services, Franchisee must notify Franchisor in writing and submit to Franchisor all information, specifications and samples that Franchisor requests. Any products or services from Suppliers must be in accordance with the then-current ENGEL & VÖLKERS System standards. Such approval of any products or services will be made by Franchisor based on samples that have been provided to it. Franchisor reserves the right to require that samples from the proposed Supplier be delivered to Franchisor or its designated testing facility for evaluation and testing. Franchisor will have sole discretion as to whether or not to approve any supplier. Approval of a Supplier as to any products or services must be made by Franchisor in writing and may also be conditioned on requirements relating to the frequency of delivery, standards of service, including prompt attention to complaints, concentration of purchases and other criteria, and may be conditioned on the supplier providing Franchisor with adequate insurance protection, the Supplier's execution of reasonable indemnity and confidentiality agreements, and the Supplier's payment of reasonable license fees to Franchisor if the Trademarks are to be used, and may be temporary or conditional, pending Franchisor further evaluation of the Supplier.
Franchisor reserves the right to re-inspect, at any time, the products and/or services of any approved Supplier and to revoke the approval upon the Supplier's failure to continue to meet any of Franchisor's then current criteria.
Franchisor and/or its affiliates may realize a profit or receive payments, rebates, discounts or other allowances in connection with Franchisee's purchases of products or services from approved Suppliers, and Franchisor and/or its affiliates may retain those profits, payments, rebates, discounts or other allowances for its own account without having any obligation to provide any benefits to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers, or one or more of its affiliates, may be the sole approved supplier for certain categories of products or services. This means that Engel & Volkers franchisees may be required to purchase specific items from Engel & Volkers or its affiliated companies.
This arrangement allows Engel & Volkers to maintain quality control and standardization across its franchise network. It also potentially enables Engel & Volkers to negotiate better pricing with suppliers due to the aggregated purchasing power of the entire franchise system. However, it also means that franchisees may not be able to source products or services from other suppliers, even if they could obtain better prices or terms.
Engel & Volkers also reserves the right to concentrate purchases with one or more suppliers to obtain lower prices, better advertising support, or better services for any group of franchisees. If a franchisee wishes to use a supplier not already approved by Engel & Volkers, the franchisee must notify Engel & Volkers in writing and provide all requested information, specifications, and samples. Engel & Volkers has sole discretion over supplier approval, which may be conditional and subject to re-inspection and revocation if the supplier fails to meet Engel & Volkers's criteria. Furthermore, Engel & Volkers and its affiliates may profit from franchisee purchases from approved suppliers without any obligation to share those benefits with the franchisee.