Does an Engel & Volkers franchisee need permission to make modifications to the Brokerage Design?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Residential Real Estate Brokerage Design: Franchisee shall bear the full cost of constructing, remodeling and equipping its own Residential Real Estate Brokerage, which shall be designed in accordance with the plans and standards set out in the System Documentation. All of the furnishings and fittings of the Brokerage Design must be maintained in a clean, well-cared-for condition at all times. Franchisee hereby agrees to arrange for any necessary repairs, redecorations and replacements for its own real estate brokerage without delay and at its own expense. Franchisee is not permitted to make any modifications to the Brokerage Design without the prior written consent of Franchisor.
- 3.4 Necessary Alterations: The parties mutually recognize that rapid changes in markets may compel them to make alterations to the appearance of Residential Real Estate Brokerage in the interests of all those involved. Franchisee hereby agrees to make any alterations and/or additions to the external and internal appearance of the Residential Real Estate Brokerage at its own expense in all cases where Franchisor regards these as necessary for the purpose of adjustment to market requirements, the needs of the market or the activity of competitors. However, this shall only apply in cases where the majority of similarly situated franchisees of Franchisor are also required to make these alterations uniformly in accordance with the ENGEL & VÖLKERS System.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, a franchisee is not permitted to make any modifications to the Brokerage Design without prior written consent from Engel & Volkers. The franchisee is responsible for the costs associated with constructing, remodeling, and equipping their Residential Real Estate Brokerage, ensuring it aligns with the plans and standards outlined in the System Documentation.
Engel & Volkers requires franchisees to maintain the furnishings and fittings of the Brokerage Design in a clean and well-cared-for condition at all times. Franchisees must arrange for necessary repairs, redecorations, and replacements for their real estate brokerage without delay and at their own expense. This ensures that all Engel & Volkers locations maintain a consistent brand image and quality.
Engel & Volkers also recognizes the need for alterations to the appearance of Residential Real Estate Brokerages due to changing market conditions. Franchisees are required to make alterations and/or additions to the external and internal appearance of their real estate brokerage at their own expense if Engel & Volkers deems it necessary for adjusting to market requirements, market needs, or competitive activities. However, this requirement only applies if a majority of similarly situated franchisees are also required to make these alterations uniformly in accordance with the Engel & Volkers System.