What is the Engel & Volkers franchisee required to abstain from in agreements with third parties?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In particular, Franchisee agrees to abstain from any actions which Franchisor has expressly agreed not to perform in agreements with third parties or from which it is obliged to abstain under law.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must avoid actions that Engel & Volkers has specifically agreed not to perform in its own agreements with third parties. Additionally, franchisees must abstain from actions that Engel & Volkers is legally obligated to avoid. This requirement ensures that franchisees do not create conflicts or legal issues for the franchisor through their dealings with other parties.
This provision is crucial for maintaining consistency and protecting the Engel & Volkers brand. By adhering to these restrictions, franchisees help ensure that the franchisor's legal and contractual obligations are upheld across the entire franchise system. This reduces the risk of legal disputes and maintains a uniform standard of operation.
For a prospective Engel & Volkers franchisee, this means carefully reviewing all agreements with third parties to ensure compliance with the franchisor's obligations. It also implies staying informed about any legal restrictions that apply to Engel & Volkers. Franchisees should seek clarification from the franchisor when in doubt to avoid potential breaches of the franchise agreement.