How does the Engel & Volkers franchise agreement address the consequences of the agreement's expiration or termination?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
21. Consequences of Expiration or Termination of Agreement
21.1 Cessation of Business Operation: On expiration or termination of this Agreement for any reason, Franchisee will do the following in regard to the franchised Business:
- 21.1.1 immediately pay any amounts due and outstanding under this Agreement, plus any interest owed. If such sums are not paid within ten (10) days of the effective date of expiration or termination, interest will accrue, calculated as provided herein. Notwithstanding the foregoing sentence, Royalty payments on Gross Revenue
from property listings with the Residential Real Estate Brokerage during the Term, that is received, directly or indirectly, by Franchisee or its owners within six (6) months of the date of termination will be due within thirty (30) days of receipt;
21.1.2 immediately cease using the ENGEL & VÖLKERS System, including the Trademarks, and Confidential Information;
21.1.3 immediately remove the name ENGEL & VÖLKERS®, ENGEL & VOELKERS, E&V® or EV from its business name, if one of those names appears in its business name, and take all necessary action to cancel any assumed name or equivalent registration and any registered user agreement which pertains to the franchised Business and contains or pertains to the name "ENGEL & VÖLKERS" or any other Trademark of Franchisor, or any variant, within fifteen (15) days following termination or expiration of this Agreement.
Franchisee must furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
If Franchisee fails to do so within thirty (30) days following the date of termination or expiration, Franchisor may, in Franchisee's name, on Franchisee's behalf and at Franchisee's expense, sign all documents necessary to cause discontinuance of Franchisee's use of the name "ENGEL & VÖLKERS" or any other Trademark or any variant with respect to the franchised Business.
Franchisee irrevocably appoints Franchisor as Franchisee's attorney-in-fact to do so;
21.1.4 immediately cease using any documents referring to the ENGEL & VÖLKERS System, e.g., advertising texts, advertising materials, printed matter and letterheads;
21.1.5 immediately remove all the typical visual features used by the ENGEL & VÖLKERS System for ENGEL & VÖLKERS offices and Residential Real Estate Brokerages;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Section 21 of the franchise agreement outlines the consequences of the agreement's expiration or termination. Upon expiration or termination for any reason, the franchisee must immediately pay all outstanding amounts owed to Engel & Volkers, including any interest. If these sums are not paid within ten days of the expiration or termination date, interest will continue to accrue. Royalty payments on gross revenue from property listings with the Residential Real Estate Brokerage during the term, received directly or indirectly by the franchisee or its owners within six months of termination, are due within thirty days of receipt.
Additionally, the franchisee must immediately cease using the Engel & Volkers System, including its trademarks and confidential information. The franchisee is also required to remove the Engel & Volkers name from its business name, if applicable, and cancel any related assumed name or registered user agreements within fifteen days of termination or expiration. Evidence of compliance with this obligation must be furnished to Engel & Volkers within thirty days. Failure to do so allows Engel & Volkers to act on the franchisee's behalf to discontinue the use of the Engel & Volkers name and trademarks, with the franchisee irrevocably appointing Engel & Volkers as their attorney-in-fact for this purpose.
Furthermore, the franchisee must stop using any documents referring to the Engel & Volkers system, such as advertising texts, materials, printed matter, and letterheads. They must also remove all visual features typical of Engel & Volkers offices and Residential Real Estate Brokerages. These measures ensure a clean break and prevent any continued association with the Engel & Volkers brand after the franchise agreement ends. Any continuation of business relations after termination will not be considered a renewal of the agreement unless expressly agreed upon in writing by both parties.