What is the duration of the Initial Term for the Engel & Volkers Limited Purpose Sales Location Addendum?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ons of its agreement with the New Development for the representation of its real property and Franchisee will operate the Limited Purpose Sales Location in accordance with the standards required by the New
Development, provided that in no event will Franchisee operate the Limited Purpose Sales Location in any way that is inconsistent with the FA, this Limited Purpose Sales Location Addendum, or the requirements of the System Documentation, as may be amended from time to time in Franchisor's sole discretion. In no event may Franchisee enter into any agreement with the New Development that is inconsistent with its obligations under the FA, or inconsistent with Franchisor's rights or obligations under the FA.
5. Term and Termination.
- 5.1 Unless terminated earlier as hereinafter provided, this Limited Purpose Sales Location Addendum commences on the Effective Date (as set forth above) and shall expire on ___________ (the "Initial Term"). Upon Franchisee's request, Franchisor may, at its sole discretion, agree to extend the Initial Term for one or more consecutive periods of time (each a "Renewal Term", the Initial Term and each Renewal Term hereinafter jointly referred to as "Term") by executing an amendment to this Limited Purpose Sales Location Addendum documenting such Renewal Term(s), as applicable.
- 5.2 Notwithstanding anything set forth in Section 5.3 below, each party may terminate this Limited Purpose Sales Location Addendum for convenience during the Term by providing at least thirty (30) days written notice to the other party.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Limited Purpose Sales Location Addendum's initial term length is not specified directly. Instead, the agreement commences on the Effective Date and expires on a date that must be filled in the agreement form itself, represented by a blank space: "__________".
This means that the exact duration of the initial term is determined on a case-by-case basis and is documented in the addendum. The franchisee needs to check the specific agreement to determine the length of the initial term. The franchisor may extend the initial term for one or more consecutive periods, each defined as a Renewal Term, through an amendment to the addendum.
Both parties have the right to terminate the Limited Purpose Sales Location Addendum with at least 30 days' written notice during the term. The operation of the Limited Purpose Sales Location is contingent upon the franchisee's compliance with the Franchise Agreement (FA). If the FA is terminated or expires, the Limited Purpose Sales Location Addendum will automatically terminate.