What is the Engel & Volkers franchisee's responsibility regarding wage and hour laws?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee alone hires each of its employees; sets their schedules; establishes their compensation rates; and, pays all salaries, benefits and employment-related liabilities (workers' compensation insurance premiums/payroll taxes/Social Security contributions/Affordable Care Act contributions/unemployment insurance premiums).
Franchisee alone has the ability to discipline or terminate its employees to the exclusion of Franchisor, which has no such authority or ability.
Franchisee further attests and affirms that minimum staffing requirements established by Franchisor, if any, are solely for the purpose of ensuring that Franchisee's franchised Business is at all times staffed at those levels necessary to operate Franchisee's business in conformity with the ENGEL & VÖLKERS System and the services, standards of quality and efficiency, and other ENGEL & VÖLKERS brand attributes known to and desired by the consuming public and associated with the Trademarks.
Franchisee affirms, warrants and understands that it may staff its franchised business with as many employees and contractors as it desires at any time so long as Franchisor's minimal staffing levels are achieved.
Franchisee also affirms and attests that any recommendations it may receive from Franchisor regarding salaries, hourly wages or other compensation for employees are recommendations only, designed to assist it to efficiently operate its franchised Business, and that Franchisee is entirely free to disregard Franchisor's recommendations regarding such employee compensation.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the franchisee is solely responsible for all employment-related liabilities, including compliance with wage and hour laws. Engel & Volkers franchisees operate as independent contractors, maintaining full control and responsibility for their franchised business, including personnel decisions. Engel & Volkers' provision of support or advice does not constitute control over the franchisee's operational decisions.
The franchisee is responsible for hiring, scheduling, compensating, and, if necessary, disciplining or terminating employees. This includes paying all salaries, benefits, and employment-related liabilities such as workers' compensation insurance, payroll taxes, Social Security contributions, Affordable Care Act contributions, and unemployment insurance premiums. Any recommendations from Engel & Volkers regarding salaries or wages are merely suggestions, and the franchisee is free to disregard them.
Furthermore, the franchisee agrees to indemnify Engel & Volkers against any claims that Franchisor or its respective affiliates are the employer, joint employer or coemployer of Franchisee and/or Franchisee's employees or contractors; claims that Franchisee, its owners, employees, contractors, brokers or Franchisee's Sales Advisors are Franchisor's employees, agents or part of a common enterprise with Franchisor, including claims regarding violation or labor or employment law regulations. This underscores the franchisee's responsibility for compliance with all labor and employment laws and regulations.