What constitutes abandonment of an Engel & Volkers Residential Real Estate Brokerage that would lead to termination?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
20.3.3 fails to operate its Residential Real Estate Brokerage for seven (7) consecutive days or otherwise abandons its Residential Real Estate Brokerage, or uses the Residential Real Estate Brokerage for any purpose prohibited by Section 3.2;
20.3.18 abandons or ceases to operate the franchised Business and/or any ENGEL & VÖLKERS Residential Real Estate Brokerage operated by Franchisee or its affiliates;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, failing to operate a Residential Real Estate Brokerage for seven consecutive days or otherwise abandoning the brokerage can lead to termination of the franchise agreement. Additionally, using the Residential Real Estate Brokerage for any purpose prohibited by Section 3.2 of the agreement also constitutes grounds for termination.
This means that an Engel & Volkers franchisee must maintain continuous operation of their real estate brokerage. A prolonged closure, even if unintentional, could be construed as abandonment and result in the termination of the franchise agreement. The franchisee must also adhere to the permitted uses of the brokerage as outlined in the franchise agreement.
It is important for prospective franchisees to understand the specific requirements for operating the Engel & Volkers Residential Real Estate Brokerage and to ensure they have the resources and commitment to maintain continuous operation. Franchisees should clarify Section 3.2 of the franchise agreement to fully understand what activities are prohibited at the brokerage to avoid violating the terms of the agreement.