Who bears the cost of the Engel & Volkers franchisor's investigation of a proposed assignee?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with any investigation the franchisor conducts regarding a proposed assignee. This condition applies when the franchisee seeks to transfer their interest in the franchise to a third party.

This means that if an Engel & Volkers franchisee wants to sell their franchise, they will have to pay for the franchisor's expenses to vet the potential buyer. These investigation costs could include background checks, financial reviews, and other due diligence procedures that Engel & Volkers deems necessary to ensure the assignee meets their standards.

This requirement ensures that Engel & Volkers maintains control over who enters their franchise system, but it also adds an expense for the franchisee looking to exit. Franchisees should factor in these potential investigation costs when planning for a sale or transfer of their Engel & Volkers franchise.