Can Engel & Volkers change the invoicing and payment process?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon reasonable notice to Franchisee, Franchisor may amend the process of invoicing and payment into an automated electronic payment process to be performed by Franchisee.
- 14.7 Direct Debit Authorization and Other Payment Methods: Franchisee must set up and maintain at all times a separate bank account for direct debit for Royalties, contributions to the National Marketing and Technology Fund and other fees and any other amounts owed under this Agreement or related agreements.
Franchisee agrees to maintain such an account with a cash balance sufficient to cover such direct debits.
If required, the parties will enter into a separate agreement to complete such direct debit authorization.
The parties acknowledge that due to technology developments and changes different payment methods may become available during the Term.
Franchisor may from time to time require that Franchisee, in lieu of direct debit withdrawals, set up another form of payment for Royalties, contributions to the National Marketing and Technology Fund, and other fees and any other amounts owed under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers has the right to modify the invoicing and payment process for franchisees. Specifically, Engel & Volkers can change the invoicing and payment process to an automated electronic payment process. Engel & Volkers must provide reasonable notice to the franchisee before implementing such a change.
Engel & Volkers franchisees are generally required to pay all ongoing fees due to Engel & Volkers or its affiliates in U.S. dollars within ten days of receiving an invoice, unless otherwise stipulated. Royalties and contributions to the National Marketing and Technology Fund are due at the earlier of the time of settlement or closing, or upon receipt of an invoice. Franchisees must also maintain a separate bank account for direct debit of royalties, contributions and other fees.
Engel & Volkers may also require franchisees to set up alternative payment methods for Royalties, contributions to the National Marketing and Technology Fund, and other fees, instead of direct debit withdrawals, due to technology developments and changes. This gives Engel & Volkers flexibility in adapting to new payment technologies and ensuring efficient payment collection from franchisees.