Is an Engel & Volkers franchisee permitted to sub-franchise, sub-license, subcontract, share, divide, or partition rights under the franchise agreement, and if so, under what conditions?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.6.3 Franchisee may not sublicense, assign or transfer, directly or indirectly or by operation of law or otherwise, any rights in the Integrated Product Suite or in the Licensed Materials;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees are not allowed to sublicense, assign, or transfer any rights related to the Integrated Product Suite or Licensed Materials. Specifically, Item 7.6.3 of the franchise agreement states that franchisees cannot sublicense, assign, or transfer rights, either directly or indirectly, or through legal means. This restriction applies to the Integrated Product Suite and the Licensed Materials provided by Engel & Volkers.
This means that an Engel & Volkers franchisee must directly manage and operate their franchise, utilizing the provided resources solely for their approved location. They cannot delegate or share these resources with other parties through sublicensing or assignment. This ensures that Engel & Volkers maintains control over its brand, technology, and operational standards, preventing unauthorized use or modification of its proprietary tools and materials.
This restriction is typical in franchising, as franchisors like Engel & Volkers need to protect their intellectual property and maintain consistent brand standards across all franchise locations. By prohibiting sublicensing and assignment, Engel & Volkers ensures that only approved and trained franchisees are using their systems and materials, which helps to uphold the quality and reputation of the brand. A prospective franchisee should be aware of this restriction and understand that they are personally responsible for managing and operating the franchise using the resources provided.