Can Engel & Volkers' approval of a supplier be temporary or conditional?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Approval of a Supplier of any products or services must be made by us in writing and may also be conditioned on requirements
involving the frequency of delivery, standards of service, including prompt attention to complaints, concentration of purchases and other criteria, and on the Supplier providing us with adequate insurance protection, the Supplier's execution of reasonable indemnity and confidentiality agreements, and the Supplier's payment of reasonable license fees if the Trademarks are used. Our approval of a Supplier may be temporary or conditional, pending our evaluation of the Supplier. You will be notified by us within 4 weeks after we receive all the requested material for review whether or not a supplier is approved. If we do not respond within 4 weeks, the supplier will be deemed approved.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–40)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers has the right to approve suppliers, and this approval can be temporary or conditional. Specifically, Engel & Volkers' approval of a supplier may be temporary or conditional while they evaluate the supplier.
This means that a prospective Engel & Volkers franchisee cannot assume that a supplier approval is permanent. The approval may be contingent on factors such as delivery frequency, service standards (including addressing complaints), purchase volume, and the supplier's ability to provide adequate insurance and sign indemnity and confidentiality agreements. The supplier may also be required to pay reasonable license fees if they use Engel & Volkers' trademarks.
Engel & Volkers will notify the franchisee within 4 weeks of receiving all requested materials for review whether the supplier is approved or not. If Engel & Volkers does not respond within 4 weeks, the supplier will be deemed approved. However, Engel & Volkers also reserves the right to re-inspect the products or services of any approved supplier at any time and can revoke the approval if the supplier fails to meet their current criteria. This ongoing evaluation adds a layer of risk for franchisees who may need to switch suppliers if Engel & Volkers revokes an approval.