What does the Engel & Volkers franchise agreement say about the franchisee's responsibility to ensure their obligations are observed by their Sales Advisors?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be responsible for ensuring that its obligations under this Agreement are observed by its employees,
contractors, and Sales Advisors. Franchisee understands and agrees that Franchisor is not a party to Franchisee's employment contracts (neither as sole, nor as a joint employer) with its own staff and Sales Advisors, and Franchisee shall be solely liable for fulfillment of these contracts in every respect (e.g., deduction and remittance of income taxes, social security contributions, etc.). None of Franchisee's employees, contractors or Sales Advisors will be considered to be Franchisor's employees and Franchisee acknowledges that Franchisor is not in a position to exercise control over Franchisee's employees, contractors or Sales Advisors.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are responsible for ensuring that their obligations under the franchise agreement are observed by their employees, contractors, and Sales Advisors. Engel & Volkers emphasizes that the franchisee is an independent contractor, maintaining full control and responsibility over their franchised business.
The agreement specifies that Engel & Volkers is not a party to the employment contracts between the franchisee and their staff or Sales Advisors. The franchisee is solely liable for fulfilling these contracts, including tax deductions and social security contributions. Engel & Volkers is not considered the employer of the franchisee's personnel and does not have control over them.
This means that while Engel & Volkers sets standards and provides system documentation, the franchisee is responsible for the day-to-day operations and ensuring that their team adheres to the franchise agreement. The franchisee also agrees to employ only qualified personnel with the required licenses and training. This includes ensuring that Sales Advisors involved in real estate activities have the appropriate licenses and have attended training courses conducted by Engel & Volkers, passing any related tests.