Does the Engel & Volkers Franchise Agreement contain provisions related to renewal?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise | §19.1 | 10 years |
| term | ||
| b. Renewal or extension of | §§19.2, 19.3 | 1 period of 10 years |
| the term | ||
| c. Requirements for franchisee to renew or extend | §§19.2, 19.3 | Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Franchise Agreement does include provisions for renewal. The initial franchise term is 10 years, and franchisees have the option to renew for one additional term of 10 years.
To renew their Engel & Volkers franchise, franchisees must provide written notice to the franchisor at least 6 months before the expiration of the current term. They must also comply with all provisions of the existing Franchise Agreement and any other agreements they have with Engel & Volkers.
Furthermore, franchisees are required to sign the then-current form of the Franchise Agreement, which may contain materially different terms and conditions compared to their original contract. They must also sign a general release and pay a renewal fee. This means that the costs and obligations for franchisees can change upon renewal, so careful review of the new agreement is essential.