What constitutes interference with Engel & Volkers' contractual relations that could lead to termination?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.3.25 interferes or attempts to interfere in any manner with Franchisor's or ENGEL & VÖLKERS' contractual relations and/or Franchisor's or ENGEL & VÖLKERS' relationships with other ENGEL & VÖLKERS System franchisees, any supplier of Franchisee, Franchisor, ENGEL & VÖLKERS or other franchisees, any governmental or quasi-governmental authority, Franchisor's or ENGEL & VÖLKERS' customers/clients, employees or advertising agencies, or any third parties;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee can face termination for interfering with Engel & Volkers' contractual relationships. Specifically, this includes interfering or attempting to interfere with Engel & Volkers' relationships with other Engel & Volkers System franchisees. It also extends to interfering with relationships with any supplier of the franchisee, Engel & Volkers, or other franchisees. This interference can also include governmental or quasi-governmental authorities, Engel & Volkers' customers/clients, employees, advertising agencies, or any third parties.
This provision is designed to protect Engel & Volkers' business relationships and ensure a harmonious network of franchisees, suppliers, and other stakeholders. By explicitly prohibiting interference, Engel & Volkers aims to maintain control over its brand and operational standards. This clause is relatively broad, covering a wide range of potential interferences, which means franchisees must be cautious in their interactions with anyone connected to the Engel & Volkers system.
For a prospective franchisee, this means understanding the importance of maintaining positive relationships within the Engel & Volkers network. Any action that could be construed as disruptive or harmful to these relationships could lead to a breach of the franchise agreement and potential termination. Franchisees should seek clarification from Engel & Volkers regarding specific situations that may be considered interference to avoid unintentional violations.
It is important to note that this is only one of many potential grounds for termination. The Engel & Volkers franchise agreement outlines various other scenarios that could lead to termination, including failure to pay royalties, breach of advertising standards, and loss of necessary licenses. Franchisees should carefully review the entire agreement to understand all of their obligations and potential consequences of non-compliance.