What is the franchisee of Engel & Volkers required to stop using immediately upon termination of the agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
21.1 Cessation of Business Operation: On expiration or termination of this Agreement for any reason, Franchisee will do the following in regard to the franchised Business:
- 21.1.2 immediately cease using the ENGEL & VÖLKERS System, including the Trademarks, and Confidential Information;
21.1.3 immediately remove the name ENGEL & VÖLKERS®, ENGEL & VOELKERS, E&V® or EV from its business name, if one of those names appears in its business name, and take all necessary action to cancel any assumed name or equivalent registration and any registered user agreement which pertains to the franchised Business and contains or pertains to the name "ENGEL & VÖLKERS" or any other Trademark of Franchisor, or any variant, within fifteen (15) days following termination or expiration of this Agreement.
Franchisee must furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
If Franchisee fails to do so within thirty (30) days following the date of termination or expiration, Franchisor may, in Franchisee's name, on Franchisee's behalf and at Franchisee's expense, sign all documents necessary to cause discontinuance of Franchisee's use of the name "ENGEL & VÖLKERS" or any other Trademark or any variant with respect to the franchised Business.
Franchisee irrevocably appoints Franchisor as Franchisee's attorney-in-fact to do so;
21.1.4 immediately cease using any documents referring to the ENGEL & VÖLKERS System, e.g., advertising texts, advertising materials, printed matter and letterheads;
21.1.5 immediately remove all the typical visual features used by the ENGEL & VÖLKERS System for ENGEL & VÖLKERS offices and Residential Real Estate Brokerages;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee must immediately cease certain activities and uses of Engel & Volkers's intellectual property and systems. Specifically, the franchisee must stop using the Engel & Volkers system, including trademarks and confidential information. This means the franchisee can no longer operate as an Engel & Volkers franchise.
Additionally, the franchisee must remove the Engel & Volkers name from its business name if it's present and cancel any related assumed name or user agreements within fifteen days of termination. Evidence of compliance must be provided to Engel & Volkers within thirty days. If the franchisee fails to do so, Engel & Volkers has the right to take necessary actions to discontinue the use of the name at the franchisee's expense.
The franchisee is also required to stop using any documents referring to the Engel & Volkers system, such as advertising texts, materials, printed matter, and letterheads. Furthermore, all visual features associated with the Engel & Volkers system for offices and residential real estate brokerages must be removed immediately. This ensures that the terminated franchisee does not continue to represent themselves as part of the Engel & Volkers brand.
These stipulations are typical in franchise agreements to protect the brand's integrity and prevent consumer confusion after a franchise relationship ends. Franchisees should be aware of these post-termination obligations and plan accordingly to avoid any legal repercussions or disputes with Engel & Volkers.