Can Engel & Volkers change the limits on permissible business activities for franchisees?

According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers retains the right to modify the scope of permissible business activities for its franchisees. Specifically, Engel & Volkers reserves the right to increase the limits and expand the scope of permissible business activities by providing advance written notice to franchisees. Engel & Volkers also has the right to add additional authorized services and equipment that franchisees are required to offer. However, while Engel & Volkers has the right to do so, they state that they have no present plans to implement such changes.

This clause provides Engel & Volkers with the flexibility to adapt to changing market conditions and industry trends by adjusting the services and products offered by its franchisees. For a prospective franchisee, this means that the scope of their business could potentially expand over time, which could lead to new revenue streams. However, it also means that franchisees may be required to invest in new equipment or training to offer these additional services.

Engel & Volkers also maintains the right to modify the Engel & Volkers System, the Integrated Product Suite, the System Documentation, and the Trademarks. They can also change the required equipment, technology, signs, trade dress, and other business characteristics that franchisees must adhere to. These changes are subject to limitations set forth in the Franchise Agreement, and the cost to the franchisee for these adaptations and modifications must not be unreasonable. Franchisees are responsible for making corresponding amendments to their versions of the System Documentation at their own expense upon receiving notification of these changes.

It is important for potential franchisees to understand that Engel & Volkers retains significant control over the evolution of the franchise system. While the franchisor states that changes will be made with consideration for the franchisees, the ultimate decision-making power rests with Engel & Volkers. Prospective franchisees should carefully consider the potential implications of these clauses and discuss any concerns with the franchisor before signing the Franchise Agreement.