What conditions must an Engel & Volkers franchisee meet to be eligible for a renewal term?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2.5 Franchisee shall have paid to Franchisor a renewal fee in an amount equal to fifty percent (50%) of the Initial Franchise Fee described in Section 14.1 hereof.
- 19.3 Any continuance of business relations between Franchisor and Franchisee after the termination or expiration of this Agreement will not constitute, and may not be construed as, a reinstatement, renewal, extension or continuation of this Agreement unless Franchisee and Franchisor expressly agree in writing to any such renewal, extension or continuation. If Franchisee continues to operate the franchised Business after the termination or expiration of the Term, without any further agreement in writing signed by Franchisor, such continuation will be a violation of Franchisor's rights to the ENGEL & VÖLKERS System and the Trademarks, provided that Franchisee's obligations as set forth in this Agreement and Franchisor's rights will continue to apply until such time that Franchisee ceases operations under the ENGEL & VÖLKERS System and the Trademarks.
- 19.4 Term: Collectively, the Initial Term and the Renewal Term (if there is one) are called the "Term".
20. Termination of Agreement
20.1 Termination by Franchisee: Franchisee agrees that it may not terminate or cancel this Agreement.
20.2 Automatic Termination Without Notice.
Franchisee will be in default under this Agreement, and all rights granted in this Agreement will immediately and automatically terminate and revert to Franchisor without notice to Franchisee, if: Franchisee, the franchised Business or any affiliate or Guarantor thereof is adjudicated as bankrupt or insolvent; all or a substantial portion of the assets of the franchised Business are assigned to or for the benefit of any creditor; a petition in bankruptcy is filed by or against Franchisee, the franchised Business and/or any affiliate or Guarantor thereof and is not immediately contested and thereafter dismissed or vacated within sixty (60) days from filing; Franchisee, the franchised Business and any affiliate or Guarantor thereof cause, permit or acquiesce in an order for relief under the U.S.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, to continue business relations after the initial franchise term, a franchisee must expressly agree in writing with Engel & Volkers for a renewal or extension. The franchisee must also pay a renewal fee equal to fifty percent (50%) of the initial franchise fee.
If an Engel & Volkers franchisee continues to operate the franchised business after the term expires without a written agreement signed by the franchisor, it will be considered a violation of Engel & Volkers' rights to the system and trademarks. However, the franchisee's obligations and Engel & Volkers' rights will remain in effect until the franchisee ceases operations under the Engel & Volkers system and trademarks.
The document specifies that the initial term and any renewal term are collectively referred to as the "Term." The franchisee is not allowed to terminate or cancel the agreement. If the franchisee, the franchised business, or any affiliate or guarantor is adjudicated bankrupt or insolvent, or if a petition in bankruptcy is filed and not dismissed within 60 days, the agreement will automatically terminate without notice.