What is the Engel & Volkers agreement's definition of 'Franchisee'?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4 The Franchisee: Franchisee wishes to be franchised the right to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage and franchised business under this Agreement (the franchised "Business") at and only at the approved location specified in Appendix 1 (hereinafter called the "Approved Location"). If, as of the date of this Agreement, the Approved Location has not yet been determined, then it shall thereafter be determined in accordance with Section 3.1 and, upon determination, inserted into Appendix 1. Franchisor is prepared to grant Franchisee, at its request, a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location and to use commercially reasonable efforts to support Franchisee.
- 1.5 Independent Investigation: Franchisee has independently investigated the business risks involved and such other matters as Franchisee deems important, including current and potential market conditions and competitive factors and risks, has read Franchisor's Franchise Disclosure Document, and has not relied on any representations not set forth in this Agreement. Aware of the relevant facts, Franchisee desires to enter into this Agreement to obtain a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location. Franchisee agrees that it will bear the financial risk involved in operation of the real estate brokerage.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the 'Franchisee' is defined as the party who 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. This business operates at the approved location specified in Appendix 1 of the agreement.
The Engel & Volkers agreement specifies that the franchisee has independently investigated the business risks, market conditions, and competitive factors. The franchisee acknowledges having read the Franchise Disclosure Document and has not relied on any representations not set forth in the agreement. The franchisee also agrees to bear the financial risk involved in the operation of the real estate brokerage.
In essence, the 'Franchisee' is the individual or entity granted the right to operate an Engel & Volkers residential real estate brokerage at a specific location, under the terms and conditions outlined in the franchise agreement. They are responsible for the financial risks and must adhere to the Engel & Volkers system.