What is the Engel & Volkers franchisee's relationship to the franchisor regarding joint venture?
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' 2025 Franchise Disclosure Document, the relationship between the franchisee and franchisor is that of an independent contractor. The agreement explicitly states that nothing within it should be interpreted as creating a partnership, joint venture, agency, fiduciary, or employment relationship between the two parties.
Engel & Volkers franchisees are responsible for exercising full control over their franchised business. They are also responsible for their business's taxes, accounts, liabilities, and other financial obligations. Any support or advice provided by Engel & Volkers is intended to protect the brand and assist the franchisee, not to control their operational decisions.
This independent contractor status means franchisees have significant autonomy in running their business. However, they must adhere to the Engel & Volkers system standards and protect the brand's reputation. Franchisees must also resolve disputes professionally and fairly, and provide information to the franchisor to mitigate any risks to the brand's reputation.