Does the Engel & Volkers Franchise Agreement confer any right to the franchisee to participate in or benefit from other business activities engaged in by the franchisor or its affiliates?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.4.4 Nothing herein precludes Franchisor, and/or its affiliates from, in or outside the Protected Area (except as restricted by Section 2.3 of this Agreement), engaging in any business activity and deploying any business concept whatsoever and using the Trademarks in connection with such other concepts and business activities. This Agreement does not confer upon Franchisee any right to participate in or benefit from such other concepts or business activities, regardless of whether it is conducted under the Trademarks or not. Franchisor and its affiliates' rights to engage in other business activities are specifically reserved and may not be qualified or diminished in any way by implication.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Franchise Agreement does not grant franchisees the right to participate in or benefit from other business activities undertaken by Engel & Volkers or its affiliates. Engel & Volkers explicitly reserves the right to engage in any business activity, regardless of location (except as restricted by Section 2.3 of the Agreement), and to use its trademarks in connection with these activities.
This means that Engel & Volkers can pursue other business ventures, even those that might compete with the franchisee's business, without any obligation to share the benefits or involve the franchisee. This could include new business concepts or activities conducted under the Engel & Volkers trademarks. The franchisee's rights are limited to the specific franchise granted in the agreement, and do not extend to these other ventures.
This provision underscores the importance of franchisees understanding the scope and limitations of their franchise agreement. While franchisees have rights within their defined territory and business, Engel & Volkers retains considerable freedom to pursue other business opportunities independently. Prospective franchisees should consider this when evaluating the potential risks and rewards of investing in an Engel & Volkers franchise.