What is the Engel & Volkers 'Approved Location' mentioned in the context of the Franchise Agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ings, client relationship management and online marketing support and for brokerage services and for the integration of franchisees into the ENGEL & VÖLKERS technology network and such other purposes as may be determined by Franchisor from time to time (the "Integrated Product Suite");
- Provision of ongoing business administration and technical and marketing support;
- Initial and continuing training courses; and
- Organization of exchanges of information and experience among franchisees.
- 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.
2. Nature of Franchise
- 2.1 Grant of Franchise: Subject to the terms of this Agreement, Franchisor hereby grants to Franchisee the non-exclusive right to establish and operate an ENGEL & VÖLKERS® residential real estate brokerage at the Approved Location for the provision of real estate brokerage services with respect to residential properties of the type permitted under Section 2.2 using the ENGEL & VÖLKERS System and Trademarks (the "Residential Real Estate Brokerage").
- 2.2 Types of Property: Franchisee may provide real estate brokerage services only for residential properties consisting of a house or building (including an apartment within a multi-family building) or undeveloped land, including leaseholds, vacation and resort residential units, cooperatives, condominiums, and any other form of real estate for which a residential real estate brokerage license is required under applicable law.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the 'Approved Location' refers to the specific site where the franchisee is authorized to operate their residential real estate brokerage under the Engel & Volkers System. The Franchise Agreement grants the franchisee the right to operate the franchised business only at this Approved Location, which is detailed in Appendix 1 of the agreement. If the Approved Location is not determined by the date of the agreement, it will be determined later according to Section 3.1 and then added to Appendix 1.
The franchisee must submit their proposed Residential Real Estate Brokerage location and exterior brokerage designs (renderings) in advance to Engel & Volkers for approval. The location and designs must comply with the Engel & Volkers System and System Documentation. Failure to comply with these location and design requirements constitutes a material breach of the Franchise Agreement.
Engel & Volkers may also grant franchisees the option to operate an additional location within the Protected Area for administrative purposes. This Limited Purpose Administrative Location does not replace the obligation to operate the Approved Location as set forth in the Franchise Agreement. The franchisee cannot relocate the Administrative Location without prior written consent from Engel & Volkers. Operating an Administrative Location does not guarantee the franchisee the right to acquire additional franchises or operate additional administrative locations.