What costs is the Engel & Volkers franchisee responsible for regarding the investigation of the proposed assignee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must pay the costs of any investigation required to be conducted by Franchisor.
- 22.3.2 That, upon Franchisor's request, the proposed assignee (or, if the proposed assignee is a business entity, each and every Principal owner or guarantor of the proposed assignee) presents himself, herself or itself for a personal interview at Franchisor's corporate office, or any other location (or by virtual / videoconference call) that Franchisor designates, at a date and time Franchisor reasonably requests, without expense to Franchisor.
Franchisor may determine to meet with the proposed assignee at his, her or its principal place of business or residence and, if Franchisor does so, Franchisee will reimburse Franchisor for all travel, lodging, meal and personal expenses related to such meeting.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, if a franchisee wishes to assign their franchise to a third party, the franchisee is responsible for covering the costs of any investigation that Engel & Volkers deems necessary to conduct. This investigation is to ensure the proposed assignee meets Engel & Volkers' standards.
Specifically, Engel & Volkers may request the proposed assignee to attend a personal interview at Engel & Volkers' corporate office or another designated location. The proposed assignee bears their own expenses for this interview. However, if Engel & Volkers chooses to meet the proposed assignee at their place of business or residence, the franchisee must reimburse Engel & Volkers for all travel, lodging, meal, and personal expenses related to this meeting.
This means that a franchisee looking to sell their Engel & Volkers franchise needs to factor in these potential investigation costs, as they can add to the expenses associated with the transfer. It is important for prospective franchisees to understand these obligations when considering the possibility of selling their franchise in the future.