Does the Engel & Volkers franchise agreement acknowledge that other franchisees may operate under different agreements?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents, warrants and acknowledges the following statements to be true and correct as of the date Franchisee signs this Agreement, and to be binding on Franchisee:
26.13.1 Franchisee has conducted an independent investigation of the business contemplated by this Agreement.
26.13.2 Franchisee represents that, as an inducement to Franchisor's entry into this Agreement, it has made no misrepresentations in obtaining this agreement.
26.13.3 Franchisee is aware of the fact that other present or future franchisees may operate under different forms of agreement(s), and consequently that Franchisor's obligations and rights with respect to its various franchisees may differ materially
in certain circumstances. Any such variances Franchisor determines for other franchisees, do not grant Franchisee any rights or entitle Franchisee to request a similar modification under this Agreement.
26.13.4 No representation or statement has been made by Franchisor or its affiliates (or any of its or their officers, directors, managers, employees, agents or salespersons) regarding Franchisee's anticipated income, earnings and growth of the franchised Business or that of the ENGEL & VÖLKERS System, or the viability of the business opportunity being offered under this Agreement.
26.13.5 Before executing this Agreement, Franchisee has had the opportunity to contact all of Franchisor's existing franchisees.
26.13.6 Franchisee has received from Franchisor a copy of Franchisor's franchise disclosure document, together with a copy of all proposed agreements relating to the sale of the franchise, at least fourteen (14) calendar days before the execution of this Agreement or at least fourteen (14) calendar days before the payment by Franchisee to Franchisor any consideration in connection with the sale or proposed sale of the franchise granted by this Agreement.
26.13.7 Franchisee understands that the franchise relationship is an arms' length, commercial business relationship in which each party acts in its own interest.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the franchise agreement explicitly acknowledges that other franchisees may operate under different agreements. Specifically, the agreement states that franchisees are aware that other present or future franchisees may operate under different forms of agreement. Consequently, Engel & Volkers' obligations and rights with respect to its various franchisees may differ materially in certain circumstances.
This acknowledgement is significant for prospective franchisees because it highlights that the terms and conditions of their franchise agreement may not be identical to those of other franchisees within the Engel & Volkers system. This could impact various aspects of the franchise relationship, such as fees, support, or operational requirements. Engel & Volkers retains the right to determine variances for other franchisees, and these variances do not grant any rights to a franchisee or entitle them to request similar modifications to their own agreement.
This clause protects Engel & Volkers from being obligated to offer the same terms to all franchisees, allowing for flexibility in adapting to different market conditions or individual franchisee circumstances. However, it also means that franchisees need to be aware that their agreement is specific to them and that they cannot assume that all other franchisees have the same rights and obligations. Prospective franchisees should carefully review the terms of their agreement and seek clarification from Engel & Volkers regarding any potential differences compared to other franchisees.
It is a common practice in franchising to have some degree of variation in franchise agreements, especially as a franchise system evolves and adapts over time. However, the Engel & Volkers agreement makes this explicit, ensuring that franchisees are aware of this possibility from the outset. This underscores the importance of conducting thorough due diligence and understanding the specific terms of the franchise agreement before investing in an Engel & Volkers franchise.