What is the Engel & Volkers agreement's definition of 'Approved Location'?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the 'Approved Location' is defined as the location specified in Appendix 1 of the Franchise Agreement where the franchisee is authorized to operate their residential real estate brokerage. The agreement states that the franchisee wishes to be franchised the right to use the Engel & Volkers system to operate a residential real estate brokerage and franchised business under the Agreement at and only at the approved location specified in Appendix 1. If the Approved Location has not yet been determined as of the date of the Agreement, it will be determined later in accordance with Section 3.1 and then inserted into Appendix 1. Engel & Volkers grants the franchisee the right to use the Engel & Volkers System to operate a residential real estate brokerage at the Approved Location and will use commercially reasonable efforts to support the franchisee.

This means that an Engel & Volkers franchisee's rights to operate under the Engel & Volkers system are strictly limited to the specific location that is approved by Engel & Volkers and documented in the franchise agreement. The franchisee needs to secure Franchisor approval of its Approved Location in accordance with the provisions of Section 3.1. Operating outside of this location would be a breach of the franchise agreement. The franchisee must also obtain and maintain the licenses required for its business operation, including having at any time a broker of record who holds the broker license required at the Approved Location.

Engel & Volkers may also grant the franchisee the non-exclusive, non-transferrable right to establish and operate a Limited Purpose Administrative Location within Franchisee's Protected Area subject to the terms of an Administrative Location Addendum and the FA. However, the franchisee acknowledges and agrees that the Administrative Location is not deemed to be nor does it constitute, replace or otherwise amend Franchisee's obligation to establish and operate an Approved Location as set forth in the FA. The franchisee may not relocate the Administrative Location without Franchisors prior written consent.