What is the definition of 'proposed assignee' in the context of an Engel & Volkers franchise agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.3.1 That the proposed assignee (meaning individual or business entity which, after the proposed assignment, will be the franchisee under this Agreement or under any successor/renewal agreement) applies to Franchisor for acceptance as a franchisee and demonstrates to Franchisor's satisfaction that the proposed assignee (and, if it is a business entity, each and every Principal owner and guarantor of the proposed assignee) possesses the skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating and ability to assume the duties and obligations under this Agreement or any successor agreement.
Franchisee must pay the costs of any investigation required to be conducted by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a 'proposed assignee' refers to the individual or business entity that, following a proposed assignment, will become the franchisee under the existing Engel & Volkers agreement or any subsequent renewal agreement.
For a prospective Engel & Volkers franchisee, this definition is crucial because it outlines the requirements that any potential buyer of their franchise must meet. Engel & Volkers retains the right to ensure that the proposed assignee has the necessary skills, qualifications, financial stability, background, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and overall ability to fulfill the obligations outlined in the franchise agreement.
This clause protects Engel & Volkers' brand standards and the interests of other franchisees by ensuring that any new franchisee is capable of maintaining the quality and performance expected within the Engel & Volkers system. The franchisee is responsible for covering the costs of any investigation conducted by Engel & Volkers to assess the proposed assignee's suitability.