Can Engel & Volkers condition supplier approval on the supplier's execution of indemnity and confidentiality agreements?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, Engel & Volkers has the right to designate or approve suppliers for products and services used in the franchised business. If a franchisee proposes a new supplier, Engel & Volkers can request information, specifications, and samples to ensure the supplier meets Engel & Volkers's standards. Engel & Volkers has the sole discretion to approve or disapprove any supplier.
Engel & Volkers's approval of a supplier can be conditional. These conditions may include requirements related to delivery frequency, service standards (including addressing complaints), purchase concentration, and other criteria.
Specifically, Engel & Volkers can require the supplier to provide adequate insurance protection, execute reasonable indemnity and confidentiality agreements, and pay reasonable license fees if the Trademarks are used. This means that before a supplier can be approved to provide goods or services to Engel & Volkers franchisees, they may need to agree to protect Engel & Volkers's interests through indemnity and confidentiality agreements.