What is the Engel & Volkers franchisee's responsibility regarding compliance with immigration laws?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
26.11.3 Franchisee undertakes to operate its franchised Business in strict compliance with all applicable laws, rules and regulations of all governmental authorities; comply with all applicable wage, hour and other laws and regulations; prepare and file all necessary tax returns; pay all taxes imposed on Franchisee related to the Residential Real Estate Brokerage; obtain and keep in good standing all necessary licenses, permits and other required forms of governmental approval required for Franchisee to offer and sell the services and products which now or in the future are part of the ENGEL & VÖLKERS System; pay or cause to be paid prior to delinquency all taxes, fines, fees and/or assessments arising out of or in connection with the operation of its franchised Business; and, otherwise be responsible for compliance, at Franchisee's sole expense, with all governmental or quasigovernmental requirements, restrictions, duties and responsibilities.
26.11.4 Franchisee shall notify Franchisor in writing within five (5) days of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, which may adversely affect the operation or financial condition of Franchisee.
26.11.5 Franchisee and its Principals understand the requirements of, and will abide by, all United States government economic sanctions requirements throughout the Term.
Franchisee and its Principals represent and warrant that neither Franchisee nor any of its direct or indirect Principals, shareholders, owners, directors, managers, affiliates, employees or agents, nor any funding source Franchisee utilizes, is or will be identified on the list of the U.S.
Treasury's Office of Foreign Assets Control (OFAC) or is or will be a person subject to trade restrictions under United States law, including (without limitation) the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the Trading with the Enemy Act, 50 U.S.C.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
Based on the 2025 Engel & Volkers Franchise Disclosure Document, franchisees are responsible for operating their franchised business in strict compliance with all applicable laws, rules, and regulations of all governmental authorities. This includes complying with all applicable wage, hour, and other laws and regulations. While the FDD does not explicitly mention immigration laws, the franchisee's broad obligation to adhere to all applicable laws would encompass immigration laws related to employment eligibility verification, visa requirements, and other related matters if they employ individuals. Engel & Volkers franchisees must secure and maintain all necessary licenses, permits, and other required forms of governmental approval needed to offer and sell services and products within the Engel & Volkers system. They are also responsible for paying all taxes, fines, fees, and assessments related to the operation of their franchised business.
Engel & Volkers franchisees must notify the franchisor in writing within five days of any action, suit, or proceeding, or the issuance of any order, writ, injunction, award, or decree from any court, agency, or governmental body that may adversely affect their operation or financial condition. This notification requirement ensures that Engel & Volkers is informed of any legal or regulatory issues that could impact the franchisee's business. Franchisees and their principals must also comply with all United States government economic sanctions requirements throughout the term of the franchise agreement.
Furthermore, Engel & Volkers franchisees must employ only qualified personnel with the background, experience, and credentials customary under best practices and standards in the real estate brokerage industry. If required by law, franchisees must comply with all federal and state information data privacy and data security laws and regulations applicable to the franchised business. This includes implementing adequate security measures to protect financial and personal information collected from customers, sales advisors, staff, and other third parties. Franchisees must also provide written notice of the Engel & Volkers system's privacy policies and provide customers and other parties with the opportunity to opt-out of certain disclosures of their financial information.