What is the Engel & Volkers franchisee's relationship to the franchisor regarding fiduciary duty?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.1 Independent Contractor: Franchisee is and shall be an independent contractor and nothing contained in this Agreement shall be construed to create a partnership, joint venture, agency, fiduciary, or employment relationship of any kind between the parties. Franchisee does not have the authority to bind or obligate Franchisor in any way by any promise or representation, except as specifically and expressly authorized by Franchisor in writing. Franchisee will exercise full and complete control over and have full responsibility for its franchised Business. Any education, support, advice or resources Franchisor provides to Franchisee in connection with the franchised Business is solely for the purpose of protecting the ENGEL & VÖLKERS System, including the Trademarks, and goodwill associated with the ENGEL & VÖLKERS System and assisting Franchisee in the operation of the franchised Business, and not for the purpose of controlling or in any way exercising or exerting control over Franchisee's decisions or the day-to-day operation of the franchised Business, including Franchisee's personnel-related decisions.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the relationship between the franchisee and franchisor is explicitly defined as that of independent contractors, with no fiduciary duty implied. The agreement specifies that nothing within it should be interpreted as creating a partnership, joint venture, agency, fiduciary, or employment relationship between the parties. This means that Engel & Volkers franchisees are considered independent business owners responsible for their own business operations.
Engel & Volkers franchisees operate with full control and responsibility over their franchised business. Any support, advice, or resources provided by Engel & Volkers are intended to protect the brand and assist in the business's operation, not to control the franchisee's decisions or day-to-day activities. This reinforces the independent nature of the franchisee's role and their autonomy in managing their business.
This arrangement is typical in many franchise systems, where franchisees are granted the right to use the franchisor's brand and system but operate as independent entities. Prospective Engel & Volkers franchisees should understand that they are entering into a business relationship where they are responsible for their own success and compliance with the franchise agreement, without the protections or obligations that a fiduciary relationship would entail.