Can Engel & Volkers appoint third parties to perform inspections of a franchisee's office?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
13.2 Inspections and Certifications: Franchisor and Franchisee agree that it is essential to preserve the standards and uniformity of the ENGEL & VÖLKERS System. Consequently, Franchisee hereby grants Franchisor or its appointed agents the right to perform audits of its office organization, accounting procedures, and other aspects of the Residential Real Estate Brokerage at reasonable times during normal business hours, with or without prior notice to Franchisee, and at the same time to allow inspection of its business documents for the purpose of verifying compliance with the standards and quality required under this Agreement and adherence to those elements of the ENGEL & VÖLKERS System that relate to Franchisee providing residential real estate services under this Agreement. Franchisor shall be entitled to appoint third parties, in particular accountants, to exercise these inspection rights. Franchisor has the right to have Franchisee's books and records
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers retains the right to ensure franchisees maintain the standards and uniformity of the Engel & Volkers system. To this end, Engel & Volkers or its appointed agents can perform audits of a franchisee's office organization, accounting procedures, and other aspects of the Residential Real Estate Brokerage. These audits can occur at reasonable times during normal business hours, with or without prior notice to the franchisee.
The purpose of these inspections is to verify compliance with the standards and quality required under the Franchise Agreement and adherence to the elements of the Engel & Volkers system related to providing residential real estate services. Engel & Volkers is specifically entitled to appoint third parties, such as accountants, to exercise these inspection rights.
This means that as an Engel & Volkers franchisee, you must allow Engel & Volkers, or third parties they appoint, to inspect your business documents and practices to ensure you are meeting the brand's standards. This is a fairly standard practice in franchising, allowing the franchisor to protect brand consistency and quality across all locations. Franchisees should maintain organized records and be prepared for periodic audits.