What is the Engel & Volkers franchisee's responsibility regarding compliance with laws pertaining to terrorism?

According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees and their principals must adhere to all United States government economic sanctions requirements throughout the term of their agreement. This means that Engel & Volkers franchisees must ensure they are not conducting business with individuals or entities on the U.S. Treasury's Office of Foreign Assets Control (OFAC) list or those subject to trade restrictions under United States law, including the International Emergency Economic Powers Act and the Trading with the Enemy Act.

Engel & Volkers requires franchisees and their principals to represent and warrant that neither they nor any of their direct or indirect principals, shareholders, owners, directors, managers, affiliates, employees, or agents, nor any funding source they utilize, is or will be identified on the OFAC list or is or will be a person subject to trade restrictions under United States law. This is a critical obligation, as failure to comply with these regulations can result in severe legal and financial penalties.

In practical terms, this means that a prospective Engel & Volkers franchisee must conduct thorough due diligence to ensure that all parties involved in their business, including investors and employees, are not on any restricted lists. They must also stay informed about any changes to these regulations and update their compliance procedures accordingly. This requirement is not uncommon in franchising, as franchisors typically want to ensure that their franchisees operate ethically and legally to protect the brand's reputation and avoid legal liabilities.