Does the Engel & Volkers Franchise Agreement contain provisions related to transfer?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise | ||
| Agreement | ||
| agreement with us or our affiliates and the default | ||
| under that agreement is not curable or you or your | ||
| affiliate did not cure it during the cure period (and we | ||
| may also terminate the other agreement if you are in | ||
| default under the Franchise Agreement); you omitted | ||
| or misrepresented any material fact in the information | ||
| you furnished to us in connection with our decision to | ||
| enter into a Franchise Agreement with you; you and | ||
| we agree to terminate the Franchise Agreement; you | ||
| purport to transfer any interest in your franchise to a | ||
| third party in violation of the Franchise Agreement; | ||
| you use or duplicate any aspects of the Engel & | ||
| Völkers System, services, program or products in an | ||
| unauthorized fashion; you engage in any business or | ||
| market any services under a name or mark that in our | ||
| opinion is confusingly similar to the Trademarks; you | ||
| abandon or cease to operate your franchised business; | ||
| you knowingly conceal revenues, maintain false | ||
| books or records, falsify information or otherwise | ||
| defraud or make false representations to us; you do | ||
| not maintain required financial records, you are | ||
| found, after our audit, to have understated your | ||
| revenues by 2% or more at least three times within | ||
| any 36-months period, or by 5% for a reporting | ||
| period; you take, withhold, misdirect or appropriate | ||
| funds for your own use from your employees' wages, | ||
| us or you systematically fail to deal fair and honestly | ||
| with your staff members, clients, sales advisors or | ||
| suppliers, or fail to take action against or discharge an | ||
| agent, servant or staff member sho embezzled funds; | ||
| you commit the same act of default within six month | ||
| after having cured a default under Section 20.4; you | ||
| attempt to or interfere in our contractual relationships; | ||
| you engage in a practice that subjects you or us to | ||
| widespread publicity, ridicule and derision; you | ||
| breach a provision of the Franchise Agreement | ||
| relating to our advertising standards (incl. but not | ||
| limited to our corporate identity) which is not cured | ||
| within 3 days after our written notice thereof, your | ||
| licenses to operate the franchised business or other | ||
| governmental authorizations are revoked or | ||
| terminated or you engage in any act or conduct, or | ||
| fail to engage in any act or conduct, which authorizes | ||
| us under the Franchise Agreement to terminate you | ||
| immediately upon notice to you. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
Yes, the Engel & Volkers 2025 Franchise Disclosure Document (FDD) includes provisions related to the transfer of a franchise. Specifically, the summary table in Item 17 indicates that Engel & Volkers can terminate the Franchise Agreement if a franchisee attempts to transfer any interest in their franchise to a third party in violation of the Franchise Agreement. This highlights the importance of adhering to the outlined procedures and conditions for any transfer to be considered valid.
Additionally, the California Franchise Investment Law, as noted in an addendum, provides rights to the franchisee concerning the transfer of a franchise. This law stipulates that if the franchise agreement contains any provision inconsistent with the law, the law will take precedence. This ensures that franchisees in California have certain protections regarding transfer rights, regardless of what the standard Engel & Volkers franchise agreement might state.
Furthermore, in the addendum for North Dakota, there are amendments and additions to the Franchise Agreement that could indirectly affect transfer rights, although they are primarily focused on waivers and damages. Prospective franchisees should carefully review these state-specific addenda, along with the main franchise agreement, to fully understand their rights and obligations regarding franchise transfers, as state laws can significantly modify the standard terms.