Is an Engel & Volkers franchisee entitled to compensation for assigning amendments or improvements to the Engel & Volkers System to the franchisor?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby agrees to inform Franchisor of all experience gained during use of the ENGEL & VÖLKERS System and the rights under this Agreement, and to allow Franchisor and other ENGEL & VÖLKERS franchisees to use the know-how gained from its experience free of charge.
Franchisee hereby assigns to Franchisor any such amendments or improvements to the ENGEL & VÖLKERS System.
Franchisee shall not be entitled to any compensation for such assignment.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are not entitled to compensation for assigning amendments or improvements to the Engel & Volkers System to the franchisor. The FDD stipulates that franchisees must inform Engel & Volkers of all experience gained during the use of the Engel & Volkers System and allow Engel & Volkers and other franchisees to use the know-how gained from their experience free of charge.
Specifically, the Engel & Volkers franchise agreement requires that any amendments or improvements made to the Engel & Volkers System by a franchisee are automatically assigned to Engel & Volkers. This means Engel & Volkers gains ownership of these changes.
The explicit condition that franchisees will not receive compensation for these assignments is clearly stated in the FDD. This is a standard practice in many franchise systems, where the franchisor seeks to maintain uniform standards and control over the brand's intellectual property. This policy ensures that Engel & Volkers can freely incorporate and disseminate improvements across the entire franchise network without incurring additional costs for individual franchisee contributions.