What is an Engel & Volkers franchisee prohibited from doing before a Limited Purpose Location Addendum is executed?

According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee is prohibited from signing a lease or incurring any other expenses or liabilities for a Limited Purpose Location before the Limited Purpose Location Addendum is executed. This addendum must be signed by both the franchisee and Engel & Volkers for each Limited Purpose Location.

This stipulation protects both the franchisee and Engel & Volkers. The franchisee is protected from incurring expenses for a location that may not be approved. Engel & Volkers maintains control over the establishment and operation of these Limited Purpose Locations, ensuring they meet the brand's standards and strategic objectives.

Prospective Engel & Volkers franchisees should be aware of this restriction and factor in the time required for approval and addendum execution when planning the opening of any Limited Purpose Locations. Failing to adhere to this requirement could result in financial losses if a lease is signed or expenses are incurred for a location that is ultimately not approved by Engel & Volkers.