Does the Engel & Volkers franchise agreement state that the franchisor is an agent of the Engel & Volkers Group?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that neither the Engel & Völkers Group nor the Parent are a party to this Agreement or bound to Franchisee in any way by this Agreement.
Although as a franchisee of the ENGEL & VÖLKERS System, Franchisee may obtain services from the Engel & Völkers Group or Parent or their affiliates, Franchisee understands and agrees that:
25.1.1 this Agreement is solely between Franchisee and Franchisor;
25.1.2 Franchisee will look only to Franchisor for performance of any of Franchisor's obligations under this Agreement;
25.1.3 The Engel & Völkers Group, the Parent, E&V Marken and Grund Genug Verlag are each an intended third-party beneficiary of this Agreement as provided in Section 25.2;
25.1.4 Franchisor is not an agent of the Engel & Völkers Group or the Parent and has no authority to bind it to any commitments or obligations;
25.1.5 Franchisee has dealt only with Franchisor in the award of the ENGEL & VÖLKERS franchise (and not with the Engel & Völkers Group or the Parent or any of their affiliates);
25.1.6 Neither the ENGEL & VÖLKERS Group nor the Parent or their affiliates have no obligations to Franchisee under this Agreement or otherwise in connection with Franchisee's acquisition of the franchise;
25.1.7 Franchisee will make no claims against the Engel & Völkers Group or the Parent or any of their affiliates arising out of Franchisee's acquisition of this Agreement or Franchisor's performance of its obligations under this Agreement;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the franchise agreement explicitly states that the franchisor is not an agent of the Engel & Volkers Group. This means that Engel & Volkers franchisees cannot claim that the franchisor has the authority to bind the Engel & Volkers Group to any commitments or obligations. The agreement clarifies that the relationship is solely between the franchisee and the franchisor, Engel & Volkers Americas, Inc.
This distinction is important for prospective franchisees because it clarifies the limits of the franchisor's authority and the scope of the franchisee's contractual relationship. Franchisees must look only to Engel & Volkers Americas, Inc. for the performance of obligations under the franchise agreement. The Engel & Volkers Group, its parent company, and affiliates are intended third-party beneficiaries of the agreement, allowing them to enforce the terms, but they are not directly obligated to the franchisee under the agreement.
This arrangement protects the Engel & Volkers Group from liabilities or obligations that might arise from the actions or inactions of the franchisor. It also means that franchisees cannot make claims against the Engel & Volkers Group or its affiliates related to the franchise agreement or the franchisor's performance. Any business dealings a franchisee has with the Engel & Volkers Group or its affiliates will be governed by separate agreements, not the franchise agreement itself.
In essence, Engel & Volkers is structuring the franchise relationship to ensure that the franchisee understands they are primarily dealing with Engel & Volkers Americas, Inc., and not the broader Engel & Volkers Group. This delineation of responsibilities and liabilities is a common practice in franchising, where the parent company seeks to limit its direct exposure to the operations of individual franchisees.