What must an Engel & Volkers franchisee do if they propose to contract with a supplier not previously designated or approved?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If you propose to contract for or purchase products or services from any supplier that we have not previously designated or approved, you must notify us in writing and submit to us all information, specifications and samples that we request. Any products or services from Suppliers must meet the Engel & Völkers standards. The System Documentation contains guidelines, templates and specifications that are modified by us periodically. We will approve any products or services based on samples that have been provided to us. We reserve the right to require that samples from the proposed Supplier be delivered to us or our designated testing facility for evaluation and testing. We will have sole discretion as to whether or not to approve any supplier. Approval of a Supplier of any products or services must be made by us in writing and may also be conditioned on requirements
involving the frequency of delivery, standards of service, including prompt attention to complaints, concentration of purchases and other criteria, and on the Supplier providing us with adequate insurance protection, the Supplier's execution of reasonable indemnity and confidentiality agreements, and the Supplier's payment of reasonable license fees if the Trademarks are used. Our approval of a Supplier may be temporary or conditional, pending our evaluation of the Supplier. You will be notified by us within 4 weeks after we receive all the requested material for review whether or not a supplier is approved. If we do not respond within 4 weeks, the supplier will be deemed approved. There is no fee for requesting that we approve another supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–40)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, if a franchisee proposes to contract with or purchase products/services from a supplier not previously designated or approved by Engel & Volkers, the franchisee must notify Engel & Volkers in writing. This notification must include all information, specifications, and samples requested by Engel & Volkers. The products or services from these suppliers must meet Engel & Volkers' standards, as outlined in the System Documentation, which includes guidelines, templates, and specifications that may be modified periodically.
Engel & Volkers will approve products or services based on the samples provided. They reserve the right to require that samples from the proposed supplier be delivered to them or their designated testing facility for evaluation and testing. The decision to approve any supplier is at Engel & Volkers' sole discretion. Approval must be made in writing and may be conditional, involving factors such as delivery frequency, service standards (including prompt attention to complaints), purchase concentration, and other criteria. The supplier may also be required to provide adequate insurance protection, execute indemnity and confidentiality agreements, and pay reasonable license fees if the Trademarks are used.
The approval of a supplier by Engel & Volkers may be temporary or conditional, pending their evaluation. The franchisee will be notified within 4 weeks after Engel & Volkers receives all the requested material for review, indicating whether the supplier is approved or not. If Engel & Volkers does not respond within 4 weeks, the supplier will be deemed approved. There is no fee for requesting supplier approval. This process ensures that all products and services used in the Engel & Volkers franchise meet the brand's standards and protect its trademarks and reputation.
This requirement is typical in franchising, as franchisors need to maintain quality control and brand consistency across all franchise locations. By retaining the right to approve suppliers, Engel & Volkers can ensure that franchisees are using products and services that meet their standards, which ultimately protects the brand's reputation and the customer experience. The four-week response window provides a reasonable timeframe for franchisees to receive a decision, and the automatic approval if no response is received offers a degree of certainty.