Does the Engel & Volkers Franchise Disclosure Document contain the Franchise Agreement and related agreements that detail the provisions of the franchise relationship?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
There are state specific addenda attached as Exhibit M for the states of Hawaii, Illinois, Maryland, Minnesota, New York, North Dakota, Virginia and Washington.
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise | §19.1 | 10 years |
| term | ||
| b. Renewal or extension of | §§19.2, 19.3 | 1 period of 10 years |
| the term | ||
| c. Requirements for franchisee to renew or extend | §§19.2, 19.3 | Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
| e. Termination by franchisor without cause | §§4.8 | We can terminate upon written notice to you if we lose our rights to use the Engel & Völkers System and Trademarks. |
| w. Choice of law | §26.1 §8.3, Appendix 2 | New York law applies. For sales of goods and services by us, New York law applies. For sales of goods and services by E&V Residential or its affiliates based in Germany, German law applies. This provision may be subject to state law. |
This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the document itself summarizes certain provisions of the franchise agreement. The FDD also indicates that in California, the California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the disclosure document. Prospective franchisees are advised to read the disclosure document and all agreements carefully.
The FDD also includes state-specific addenda that may amend the standard franchise agreement. For example, there are addenda for Hawaii, Illinois, Maryland, Minnesota, New York, North Dakota, Virginia, and Washington attached as Exhibit M. There is also a multi-state addendum for states that have adopted as law the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements, which includes California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
Furthermore, the FDD outlines key provisions of the franchise agreement, such as the initial term length of 10 years, renewal options for one additional term of 10 years, conditions for renewal, termination rights, and choice of law. For instance, Engel & Volkers can terminate the agreement if they lose their rights to use the Engel & Volkers System and Trademarks. The choice of law is New York, although this may be subject to state law.