What is the Engel & Volkers franchisee required to do during the Renewal Term regarding remodeling or renovating their Residential Real Estate Brokerage?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
19.2.3 Prior to commencement of the Renewal Term, Franchisee shall have executed Franchisor's then-current form of Franchise Agreement, which shall replace this Agreement, provided that Franchisee will pay the renewal fee set forth in Section 19.2.5 in lieu of the Initial Franchise Fee and that Franchisee will not be entitled to any renewal term set forth in such new Franchise Agreement; and all other agreements then customarily used by Franchisor in granting franchises, which Franchise Agreement and other agreements may contain materially different terms and conditions (including, without limitation, different or increased financial terms, Royalties, fees and/or National Marketing and Technology Fund contributions) and a requirement that Franchisee during the Renewal Term remodel, refurbish, renovate or re-equip its Residential Real Estate Brokerage to bring it into full compliance with all system standards for new franchise agreements within the time period specified by Franchisor;
19.2.4 Prior to commencement of the Renewal Term, Franchisee shall have executed a general release, in Franchisor's then-current form, of all claims Franchisee may have against Franchisor and their respective affiliates, and their respective officers, directors, owners, employees, affiliates, successors and assigns; and
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, to commence a Renewal Term, a franchisee may be required to remodel, refurbish, renovate, or re-equip their Residential Real Estate Brokerage. This is to ensure the brokerage fully complies with the system standards for new franchise agreements at the time of renewal. The specific timeframe for completing these updates will be determined by Engel & Volkers.
This requirement is part of the then-current form of the Franchise Agreement that the franchisee must execute prior to the commencement of the Renewal Term, which will replace the original agreement. The new agreement may contain materially different terms and conditions, including different or increased financial terms, royalties, fees, and National Marketing and Technology Fund contributions.
In addition to the remodeling requirements and the updated Franchise Agreement, the franchisee must also execute a general release, in Engel & Volkers' then-current form, of all claims against Engel & Volkers and their affiliates prior to the commencement of the Renewal Term. This release covers all officers, directors, owners, employees, affiliates, successors, and assigns.