What must an Engel & Volkers franchisee deliver to the franchisor when proposing an assignment?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ent, whether money, property or other thing or service of value including consideration received for all or part of the franchised Business; Franchisee's
rights under this Agreement; contracts; goodwill; restrictive covenants; consulting arrangements; Franchisee's furniture, fixtures, equipment and trade dress elements; accounts receivable; any consulting salary; or, any other fees or arrangements or other form of consideration, whether the consideration is received in the present or promised to be given to the assignor or any other person in the future (including the highest possible value of any contingent future consideration).
- 22.3.13 That Franchisee and, if Franchisee is a business entity, each of its owners and guarantors, and the assignee (and if the assignee is a business entity, each of its owners and guarantors) execute Franchisor's then-standard form of General Release.
- 22.3.14 That if the assignee is a business entity, all of the requirements of its new Franchise Agreement concerning business entities must be complied with before Franchisor will execute the new Franchise Agreement a
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee seeking to assign their franchise must fulfill several requirements. First, they must furnish Engel & Volkers with a copy of any proposed contract of assignment, including all related agreements. Following the execution of the contract, the franchisee must promptly provide Engel & Volkers with a copy of the executed contract and any related agreements. This ensures Engel & Volkers is fully informed about the terms of the assignment.
Additionally, the franchisee is responsible for paying Engel & Volkers a transfer fee of $2,500. This fee is intended to compensate Engel & Volkers for the legal, accounting, and other expenses they incur while processing the assignment. However, this transfer fee does not apply to mortgages or other standard encumbrances associated with financing, providing some relief in those specific cases.
Furthermore, both the franchisee (and its owners and guarantors, if the franchisee is a business entity) and the proposed assignee (and its owners and guarantors, if the assignee is a business entity) must execute Engel & Volkers' standard form of General Release. This likely involves releasing Engel & Volkers from certain liabilities related to the transfer. Compliance with all requirements pertaining to business entities outlined in the new Franchise Agreement is also necessary before Engel & Volkers will execute the new agreement. These stipulations ensure that the assignment process is thorough and protects Engel & Volkers' interests.