Is an Engel & Volkers franchisee required to pay a renewal fee to renew the franchise agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise | §19.1 | 10 years |
| term | ||
| b. Renewal or extension of | §§19.2, 19.3 | 1 period of 10 years |
| the term | ||
| c. Requirements for franchisee to renew or extend | §§19.2, 19.3 | Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees are required to pay a renewal fee to renew their franchise agreement. The initial franchise term is 10 years, with an option to renew for one additional term of 10 years. To renew, the franchisee must provide written notice at least six months before the current term expires, comply with all provisions of the Franchise Agreement and other agreements with Engel & Volkers, sign the then-current form of Franchise Agreement, sign a general release, and pay a renewal fee.
It is important to note that the renewal agreement may contain materially different terms and conditions than the original contract. This means that Engel & Volkers can change the terms of the franchise agreement upon renewal, which could impact the franchisee's obligations and profitability.
Prospective franchisees should carefully consider the implications of the renewal requirements, including the potential for increased fees or altered terms. It is advisable to seek legal counsel to review the renewal terms and negotiate favorable conditions. Understanding these renewal terms is crucial for long-term planning and financial stability as an Engel & Volkers franchisee.