Is Engel & Volkers the only approved supplier for any category of goods or services?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
u may also purchase certain products and services using the Trademarks from other suppliers, as long as they are approved by us. We are not the only approved supplier for any category of goods or services. Our affiliate Grund Genug Verlag is the only approved supplier of GG Magazine as described above.
We may designate or approve a Supplier of any products or services to be used in your franchised business. We may concentrate purchases with one or more Suppliers to obtain lower prices, better advertising support and/or better services for any group of your business. If you propose to contract for or purchase products or services from any supplier that we have not previously designated or approved, you must notify us in writing and submit to us all information, specifications and samples that we request. Any products or services from Suppliers must meet the Engel & Völkers standards. The System Documentation contains guidelines, templates and specifications that are modified by us periodically. We will approve any products or services based on samples that have been provided to us. We reserve the right to require that samples from the proposed Supplier be delivered to us or our designated testing facility for evaluation and testing. We will have sole discretion as to whether or not to approve any supplier. 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. There is no fee for requesting that we approve another supplier.
We reserve the right to re-inspect, at any time, the products and/or services of any approved Supplier and to revoke the approval upon the Supplier's failure to continue to meet any of our then-current criteria.
Our affiliates or we may realize a profit or receive payments, rebates, discounts, or other allowances based on your purchases of products and services from approved Suppliers, and our affiliates or we may retain these profits, payments, rebates, discounts or other allowances for our own account without having any obligation to provide any benefits to you.
As of this date, we do not have any arrangements with designated suppliers to make any payments to us.
We will not provide you with any material benefits if you purchase from or use designated or approved sources.
Our total revenue in the fiscal year ending December 31, 2024 was $27,864,688, including fees and royalties for both the yachting brokerage franchising program and the residential real estate brokerage franchising programs (including our master franchise program).
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 is not the only approved supplier for any category of goods or services. However, their affiliate Grund Genug Verlag is the only approved supplier of GG Magazine. Franchisees may purchase certain products and services using the Engel & Volkers trademarks from designated suppliers, but they can also purchase these items from other suppliers if Engel & Volkers approves them.
Engel & Volkers reserves the right to designate or approve suppliers for any products or services used in the franchised business. This allows them to potentially negotiate better prices, advertising support, or services. If a franchisee wants to use a supplier that hasn't been previously approved, they must submit all necessary information, specifications, and samples to Engel & Volkers for approval. Engel & Volkers will assess whether the products or services meet their standards, and they have the final say in approving any supplier.
The approval process may involve evaluating samples at Engel & Volkers' facilities. Approval can be temporary or conditional, and Engel & Volkers may impose requirements related to delivery frequency, service standards, insurance, indemnity agreements, confidentiality, and license fees if trademarks are used. Franchisees will be notified within four weeks of submitting the required materials whether the supplier is approved. If Engel & Volkers doesn't respond within that timeframe, the supplier is considered approved. There is no fee for requesting supplier approval. Currently, Grund Genug Verlag is an approved supplier, but there are no other approved suppliers at this time.