Does the Engel & Volkers franchise agreement warrant that the franchisee wishes to have all terms of the business relationship defined in the agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.4 The Franchisee: Franchisee wishes to be franchised the right to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage and franchised business under this Agreement (the franchised "Business") at and only at the approved location specified in Appendix 1 (hereinafter called the "Approved Location"). If, as of the date of this Agreement, the Approved Location has not yet been determined, then it shall thereafter be determined in accordance with Section 3.1 and, upon determination, inserted into Appendix 1. Franchisor is prepared to grant Franchisee, at its request, a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location and to use commercially reasonable efforts to support Franchisee.
- 1.5 Independent Investigation: Franchisee has independently investigated the business risks involved and such other matters as Franchisee deems important, including current and potential market conditions and competitive factors and risks, has read Franchisor's Franchise Disclosure Document, and has not relied on any representations not set forth in this Agreement. Aware of the relevant facts, Franchisee desires to enter into this Agreement to obtain a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location. Franchisee agrees that it will bear the financial risk involved in operation of the real estate brokerage.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the franchisee acknowledges that they wish to be franchised the right to use the Engel & Volkers system to operate a residential real estate brokerage and franchised business under the agreement. Engel & Volkers is prepared to grant the franchisee a franchise to use the Engel & Volkers System to operate a residential real estate brokerage at the Approved Location and to use commercially reasonable efforts to support Franchisee.
The franchisee also acknowledges that they have independently investigated the business risks involved and other matters they deem important, including market conditions and competitive factors. They have read the Engel & Volkers Franchise Disclosure Document and have not relied on any representations not set forth in the agreement. The franchisee is aware of the relevant facts and desires to enter into the agreement to obtain a franchise to use the Engel & Volkers System to operate a residential real estate brokerage at the Approved Location.
Furthermore, the franchisee agrees that it will bear the financial risk involved in the operation of the real estate brokerage. This indicates that Engel & Volkers wants to ensure the franchisee is fully aware of the terms, risks, and obligations associated with the franchise agreement and that the franchisee is entering into the agreement with a clear understanding of their responsibilities and the business relationship.