Does Engel & Volkers charge a fee for requesting approval of another supplier?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you propose to contract for or purchase products or services from any supplier that we have not previously designated or approved, you must notify us in writing and submit to us all information, specifications and samples that we request. Any products or services from Suppliers must meet the Engel & Völkers standards. The System Documentation contains guidelines, templates and specifications that are modified by us periodically. We will approve any products or services based on samples that have been provided to us. We reserve the right to require that samples from the proposed Supplier be delivered to us or our designated testing facility for evaluation and testing. We will have sole discretion as to whether or not to approve any supplier. Approval of a Supplier of any products or services must be made by us in writing and may also be conditioned on requirements
involving the frequency of delivery, standards of service, including prompt attention to complaints, concentration of purchases and other criteria, and on the Supplier providing us with adequate insurance protection, the Supplier's execution of reasonable indemnity and confidentiality agreements, and the Supplier's payment of reasonable license fees if the Trademarks are used. Our approval of a Supplier may be temporary or conditional, pending our evaluation of the Supplier. You will be notified by us within 4 weeks after we receive all the requested material for review whether or not a supplier is approved. If we do not respond within 4 weeks, the supplier will be deemed approved. There is no fee for requesting that we approve another supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–40)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, there is no fee for requesting approval of another supplier. Engel & Volkers reserves the right to designate or approve suppliers for products and services used in the franchised business. While franchisees may purchase certain trademarked products/services from other suppliers, they must first be approved by Engel & Volkers.
If a franchisee proposes to use a supplier not already approved, they must notify Engel & Volkers in writing and provide all requested information, specifications, and samples. These products/services must meet Engel & Volkers standards, with guidelines and specifications found in the System Documentation. Engel & Volkers has sole discretion over supplier approval, which must be in writing and may be conditional, considering factors like delivery frequency, service standards, insurance, indemnity, confidentiality agreements, and potential license fees if trademarks are used.
Engel & Volkers will notify the franchisee of the approval decision within 4 weeks of receiving all requested materials. If no response is received within this timeframe, the supplier is deemed approved. This process ensures that all suppliers meet Engel & Volkers' standards without incurring a fee for the approval request.