When assigning an Engel & Volkers franchise, who must apply to the Franchisor for acceptance?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.3.1 That the proposed assignee (meaning individual or business entity which, after the proposed assignment, will be the franchisee under this Agreement or under any successor/renewal agreement) applies to Franchisor for acceptance as a franchisee and demonstrates to Franchisor's satisfaction that the proposed assignee (and, if it is a business entity, each and every Principal owner and guarantor of the proposed assignee) possesses the skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating and ability to assume the duties and obligations under this Agreement or any successor agreement.
Franchisee must pay the costs of any investigation required to be conducted by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, if a franchisee wishes to sell or transfer their franchise to a third party, the proposed assignee must apply to Engel & Volkers for acceptance as a franchisee. This requirement ensures that the new franchisee meets Engel & Volkers' standards.
The proposed assignee must demonstrate to Engel & Volkers that they (and each principal owner and guarantor, if the assignee is a business entity) possess the necessary skills, qualifications, financial condition, background, history, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and ability to fulfill the obligations under the Franchise Agreement. This comprehensive evaluation process is typical in franchising to maintain brand standards and ensure the continued success of the franchise system.
The franchisee is responsible for covering the costs of any investigation that Engel & Volkers deems necessary to conduct as part of the application process. This financial responsibility underscores the importance of carefully vetting potential assignees before initiating the formal application. This process protects Engel & Volkers by ensuring that any new franchisee is well-qualified and financially stable, thus reducing the risk of future operational or financial issues.