What is the Engel & Volkers franchisee's obligation regarding Licensed Users and their compliance with the Franchise Agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
e of operating the Franchisee's Residential Real Estate Brokerage under the Franchise Agreement at Franchisee's Approved Location, or acting as a Sales Advisor for the Franchisee's Residential Real Estate Brokerage under the Franchise Agreement, in each case in accordance with this Agreement and the requirements of the ENGEL & VÖLKERS System, as may be amended from time to time. No other use of the Integrated Product Suite and the Licensed Materials is permitted.
7.6 Conditions of Use. Franchisee agrees that the conditions of use are as follows:
7.6.1 Franchisee shall be obliged to ensure by separate agreement with each Licensed User that any of Franchisee's obligations stipulated in this Agreement are also to be complied with by its Licensed Users;
7.6.2 Neither Franchisee nor any of its Licensed Users or staff members or Sales Advisors shall, or shall allow any other person to: modify, copy, adapt, reverse engineer, decompile, disassemble or otherwise use the Integrated Product Suite or the Licensed Materials;
7.6.3 Franchisee may not sublicense, assign or transfer, directly or indirectly or by operation of law or otherwise, any rights in the Integrated Product Suite or in the Licensed Materials;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee has specific obligations regarding Licensed Users and their compliance with the Franchise Agreement. The franchisee must ensure, through a separate agreement with each Licensed User, that all obligations stipulated in the Franchise Agreement are also complied with by its Licensed Users. This means the franchisee is responsible for the actions of their Licensed Users as they relate to adherence to the Franchise Agreement.
This obligation extends to the use of the Integrated Product Suite and Licensed Materials. Neither the franchisee nor any of its Licensed Users, staff members, or Sales Advisors are allowed to modify, copy, adapt, reverse engineer, decompile, disassemble, or otherwise misuse the Integrated Product Suite or the Licensed Materials. The franchisee also cannot sublicense, assign, or transfer any rights in the Integrated Product Suite or the Licensed Materials.
Furthermore, the franchisee is responsible for ensuring that both they and their Licensed Users obtain and maintain the necessary equipment and hardware, as prescribed by Engel & Volkers, to use the Integrated Product Suite and Licensed Materials. This includes bearing the cost of upgrades to hardware if required due to upgrades in the Integrated Product Suite or if the hardware becomes unable to perform the required functions for electronic reporting. In essence, the Engel & Volkers franchisee acts as a gatekeeper, ensuring all Licensed Users are aware of and adhere to the terms and conditions of the Franchise Agreement, particularly concerning the use of proprietary materials and systems.