What is the Engel & Volkers franchisee's obligation regarding the proposed assignee's organizational, managerial, and financial structure?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
oposed assignee is a business entity, each and every Principal owner or guarantor of the proposed assignee) presents himself, herself or itself for a personal interview at Franchisor's corporate office, or any other location (or by virtual / videoconference call) that Franchisor designates, at a date and time Franchisor reasonably requests, without expense to Franchisor. Franchisor may determine to meet with the proposed assignee at his, her or its principal place of business or residence and, if Franchisor does so, Franchisee will reimburse Franchisor for all travel, lodging, meal and personal expenses related to such meeting.
- 22.3.3 That the proposed assignee has the organizational, managerial and financial structure, resources, and capital required to conduct and operate the franchised Business: (i) in accordance with the System Documentation and brand standards as ENGEL & VÖLKERS and Franchisor indicate from time to time; and (ii) otherwise properly, in Franchisor's business judgment.
- 22.3.4 That the proposed assignee complies with Franchisor's ownership requirements relative to the control of the proposed assignee and the franchised Business.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, if a franchisee wishes to sell their franchise to a third party, the proposed assignee must demonstrate to Engel & Volkers that they possess the organizational, managerial, and financial structure, resources, and capital required to conduct and operate the franchised business. This operation must be in accordance with the Engel & Volkers system documentation and brand standards, as indicated by Engel & Volkers from time to time. The assignee must also operate the business properly, in Engel & Volkers' business judgment.
This requirement ensures that any new franchisee taking over an existing Engel & Volkers location is capable of maintaining the brand's standards and operational practices. It protects the integrity of the Engel & Volkers brand by ensuring that new operators have the necessary resources and expertise.
In addition to demonstrating the required structure, resources, and capital, the franchisee must pay the costs of any investigation required by Engel & Volkers to assess the proposed assignee. This may include a personal interview at Engel & Volkers' corporate office or another designated location, or via videoconference. If Engel & Volkers chooses to meet the proposed assignee at their place of business or residence, the franchisee will reimburse Engel & Volkers for all travel, lodging, meal, and personal expenses related to the meeting.