What does the Engel & Volkers franchise agreement say about the franchisee's control over their franchised business?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
verage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. Franchisee expressly agrees, and will never contend otherwise, that Franchisor's authority under this Agreement to certify certain of Franchisee's employees, contractors or Sales Advisors for qualification to perform certain functions for Franchisee's franchised Business does not directly or indirectly vest in Franchisor the power to hire, fire or control any such employee, contractor or Sales Advisor.
- 6.3 Franchisee acknowledges and agrees, and will never contend otherwise, that Franchisee alone will exercise day-to-day control over all operations, activities and elements of its franchised Business hereunder and that under no circumstance shall Franchisor do so or be deemed to do so. Franchisee further acknowledges and agrees, and will never contend otherwise, that the various requirements, restrictions, prohibitions, specifications and procedures of the ENGEL & VÖLKERS System which Franchisee is required to comply with under this Agreement, whether set forth in the System Documentation or otherwise, do not directly or indirectly constitute, suggest, infer or imply that Franchisor controls any aspect or element of the day-to-day operations of Franchisee's franchised Business, which Franchisee alone controls, but only constitute standards Franchisee must adhere to when exercising Franchisee's control of the day-to-day operations of its franchised Business.
- 6.4 Franchisee may not, without Franchisor's prior, express, written approval, obligate Franchisor for any expenses, liabilities or other obligations, other than as specifically provided in this Agreement. Except as expressly provided in this Agreement, Franchisor may not control or have access to Franchisee's funds or the expenditure of Franchisee's funds or in any other way exercise dominion or control over Franchisee's business. Except as otherwise expressly authorized by this Agreement, neither party will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name of or on behalf of the other party, or represent that the relationship between Franchisor and Franchisee is other than that of franchisor and franchisee.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees have significant control over the day-to-day operations of their franchised business. The franchise agreement specifies that the franchisee alone will exercise day-to-day control over all aspects of their business. Engel & Volkers states that it will not interfere or be deemed to interfere with these daily operations. This acknowledgement is a binding agreement within the franchise contract.
Engel & Volkers's requirements, restrictions, and procedures are considered standards that franchisees must adhere to while independently managing their business. These standards do not imply that Engel & Volkers controls the day-to-day operations, which remain under the franchisee's purview. This distinction is important as it clarifies that while franchisees must follow the Engel & Volkers system, they retain autonomy in how they implement it.
The franchise agreement also establishes the franchisee as an independent contractor. This means the agreement should not be interpreted as creating a partnership, joint venture, agency, fiduciary, or employment relationship between the franchisee and Engel & Volkers. The franchisee has full control and responsibility for their franchised business, and any support or advice provided by Engel & Volkers is intended to protect the brand and assist the franchisee, not to control their decisions or daily operations. This reinforces the franchisee's independent authority and responsibility in managing their Engel & Volkers franchise.