As an Engel & Volkers franchisee, am I required to obtain governmental approvals for the franchised business?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with all applicable laws and regulations and obtain all appropriate governmental approvals for the franchised business. You must operate in conformity with the methods, standards and specifications required by us to maintain uniformity within our system and to provide the highest degree of
quality and service. You must not deviate from our standards and specifications without our prior written consent.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 62–63)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, as a franchisee, you are indeed required to comply with all applicable laws and regulations and to obtain all appropriate governmental approvals necessary for operating the franchised Engel & Volkers business. This encompasses securing and maintaining all essential licenses, permits, and other forms of governmental approval required to offer and sell the services and products that are part of the Engel & Volkers system, both now and in the future. This also includes complying with all applicable wage, hour and other laws and regulations; preparing and filing all necessary tax returns; and paying all taxes imposed on Franchisee related to the Residential Real Estate Brokerage.
This requirement extends to operating the franchised business in strict adherence to all applicable laws, rules, and regulations set forth by governmental authorities at the national, state, and local levels. Franchisees are also responsible for paying all taxes, fines, fees, and/or assessments arising out of or in connection with the operation of their franchised business before they become delinquent. Furthermore, franchisees must bear the sole expense of complying with all governmental or quasi-governmental requirements, restrictions, duties, and responsibilities.
Moreover, the Engel & Volkers franchisee is obligated to inform the franchisor in writing within five days of any action, suit, or proceeding, or the issuance of any order, writ, injunction, award, or decree from any court, agency, or other governmental body that may adversely affect the operation or financial condition of the franchise. Franchisees and their principals must also adhere to all United States government economic sanctions requirements throughout the term of the agreement and ensure they are not on the U.S. Treasury's Office of Foreign Assets Control (OFAC) list or subject to trade restrictions under United States law.
In addition, Engel & Volkers franchisees acknowledge that providing certain services may require them to obtain additional licenses to comply with the laws regulating those industries. These stipulations underscore the franchisee's responsibility to maintain full legal compliance and transparency in all aspects of their business operations.