What aspects of the Engel & Volkers franchise relationship are covered in the Franchise Agreement's provisions?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
wing tables list important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Franchise Disclosure Document.**
FRANCHISE AGREEMENT
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise | §19.1 | 10 years |
| term | ||
| b. Renewal or extension of | §§19.2, 19.3 | 1 period of 10 years |
| the term | ||
| c. Requirements for franchisee to renew or extend | §§19.2, 19.3 | Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
| d. Termination by | §20.1 | You may not terminate or cancel the Franchise |
| franchisee | Agreement. This provision is subject to state law. | |
| e. Termination by franchisor without cause | §§4.8 | We can terminate upon written notice to you if we lose our rights to use the Engel & Völkers System and Trademarks. |
| f. Termination by franchisor with cause | §§20.2 – 20.4, | We can only terminate if you default, except if we lose our rights to use the Engel & Völkers System and Trademarks. |
| Provision | Section in | Summary |
| Franchise | ||
| Agreement | ||
| --- | --- | --- |
| w. Choice of law | §26.1 §8.3, Appendix 2 | New York law applies. For sales of goods and services by us, New York law applies. For sales of goods and services by E&V Residential or its affiliates based in Germany, German law applies. This provision may be subject to state law. |
| Provision | Section in | Summary |
| ----------- | ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Franchise | ||
| Agreement | ||
| agreement with us or our affiliates and the default | ||
| under that agreement is not curable or you or your | ||
| affiliate did not cure it during the cure period (and we | ||
| may also terminate the other agreement if you are in | ||
| default under the Franchise Agreement); you omitted | ||
| or misrepresented any material fact in the information | ||
| you furnished to us in connection with our decision to | ||
| enter into a Franchise Agreement with you; you and | ||
| we agree to terminate the Franchise Agreement; you | ||
| purport to transfer any interest in your franchise to a | ||
| third party in violation of the Franchise Agreement; | ||
| you use or duplicate any aspects of the Engel & | ||
| Völkers System, services, program or products in an | ||
| unauthorized fashion; you engage in any business or | ||
| market any services under a name or mark that in our | ||
| opinion is confusingly similar to the Trademarks; you | ||
| abandon or cease to operate your franchised business; | ||
| you knowingly conceal revenues, maintain false | ||
| books or records, falsify information or otherwise | ||
| defraud or make false representations to us; you do | ||
| not maintain required financial records, you are | ||
| found, after our audit, to have understated your | ||
| revenues by 2% or more at least three times within | ||
| any 36-months period, or by 5% for a reporting | ||
| period; you take, withhold, misdirect or appropriate | ||
| funds for your own use from your employees' wages, | ||
| us or you systematically fail to deal fair and honestly | ||
| with your staff members, clients, sales advisors or | ||
| suppliers, or fail to take action against or discharge an | ||
| agent, servant or staff member sho embezzled funds; | ||
| you commit the same act of default within six month | ||
| after having cured a default under Section 20.4; you | ||
| attempt to or interfere in our contractual relationships; | ||
| you engage in a practice that subjects you or us to | ||
| widespread publicity, ridicule and derision; you | ||
| breach a provision of the Franchise Agreement | ||
| relating to our advertising standards (incl. but not | ||
| limited to our corporate identity) which is not cured | ||
| within 3 days after our written notice thereof, your | ||
| licenses to operate the franchised business or other | ||
| governmental authorizations are revoked or | ||
| terminated or you engage in any act or conduct, or | ||
| fail to engage in any act or conduct, which authorizes | ||
| us under the Franchise Agreement to terminate you | ||
| immediately upon notice to you. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the Franchise Agreement covers several aspects of the franchise relationship. These include the length of the franchise term, which is 10 years, and the conditions for renewal or extension, which include providing written notice at least six months before the current term expires, complying with all agreements, signing the current franchise agreement, signing a general release, and paying a renewal fee. Note that the renewal agreement may contain materially different terms and conditions than the original contract.
The Franchise Agreement also details the conditions under which termination can occur. The franchisee cannot terminate the agreement, but Engel & Volkers can terminate the agreement with cause under various default scenarios. These scenarios include breaching the agreement, misrepresenting information, unauthorized use of the Engel & Volkers system, abandonment of the business, financial misconduct, and failure to maintain standards. Engel & Volkers can also terminate the agreement if they lose their rights to use the Engel & Völkers System and Trademarks.
Finally, the Franchise Agreement specifies that New York law governs the agreement, although this may be subject to state law. For sales of goods and services by Engel & Volkers, New York law applies, while German law applies to sales by E&V Residential or its affiliates based in Germany. These provisions define the legal framework and operational terms of the Engel & Volkers franchise.