Can an Engel & Volkers franchisee relocate the Administrative Location without permission?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS | LIMITED PURPOSE ADMINSTRATIVE LOCATION ADDENDUM ("Administrative Location Addendum") is made and entered into this (the "Effective Date") by and between ENGEL & VÖLKERS AMERICAS, INC., a Delaware corporation ("Franchisor"), and, a ("Franchisee"). |
|---|---|
| as set forth in the FA. | WHEREAS, Franchisor and Franchisee entered into a Franchise Agreement, dated (the |
| "FA") providing Franchisee with the right to use the ENGEL & VÖLKERS System to operate an Engel & | |
| Völkers Residential Real Estate Brokerage and conduct the franchised Business at an Approved Location | |
| WHEREAS, Franchisee has requested to operate an additional location within Franchisee's | |
| Protected Area for the limited purpose of housing Franchisee's administrative and support personnel and | |
| related administrative tasks for Franchisee's franchised Business. | |
| FA. | NOW THEREFORE, in consideration of the provisions in the FA, the promises in this |
| Administrative Location Addendum, and other good and valuable consideration, the delivery, receipt, and | |
| sufficiency of which are acknowledged, the parties mutually agree as set forth below. All capitalized terms | |
| not defined in this Administrative Location Addendum shall have the respective meanings set forth in the | |
| 1. | Grant of Limited Purpose Administrative Location: |
| 1.1 | Franchisor hereby grants Franchisee the non-exclusive, non-transferrable right to |
| establish and operate a Limited Purpose Administrative Location at, and only at the | |
| following | |
| location: | |
| (the | |
| "Administrative | |
| Location") within Franchisee's Protected Area subject to the terms of this Administrative | |
| Location Addendum and the FA. | |
| 1.2 | Franchisee acknowledges and agrees that the Administrative Location is not deemed to |
| be nor does it constitute, replace or otherwise amend Franchisee's obligation to establish | |
| and operate an Approved Location as set forth in the FA. | |
| 1.3 | Franchisee may not relocate the Administrative Location without Franchisors prior |
| written consent. Operating this Administrative Location does not guarantee Franchisor's | |
| consent to grant another limited purpose location or extend the Term of this | |
| Administrative Location (as set forth hereinafter), which remains at Franchisor's sole | |
| discretion. |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, an Engel & Volkers franchisee is not permitted to relocate their Administrative Location without obtaining prior written consent from the Franchisor. This requirement is explicitly stated within the Limited Purpose Administrative Location Addendum to the Franchise Agreement. This addendum outlines the specific terms and conditions related to operating an additional location solely for administrative and support personnel within the franchisee's protected area.
This stipulation ensures that Engel & Volkers maintains control over the location of its administrative sites, which can impact brand consistency and operational efficiency. By requiring prior approval, Engel & Volkers can assess whether the proposed new location aligns with its strategic objectives and brand standards. This also allows Engel & Volkers to consider potential impacts on other franchisees or the overall market presence in the area.
For a prospective Engel & Volkers franchisee, this means that the initial decision regarding the Administrative Location is crucial, as any subsequent relocation will require the franchisor's approval. The franchisee should carefully evaluate potential locations and ensure they meet their long-term needs before committing to a specific site. Furthermore, franchisees should maintain open communication with Engel & Volkers regarding any potential relocation plans to facilitate a smooth and efficient approval process.