Are Engel & Volkers franchisees responsible for obtaining and keeping in good standing all necessary licenses and permits?
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.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are responsible for obtaining and maintaining all necessary licenses and permits required to operate their franchised business. This includes adhering to all applicable laws, rules, and regulations set forth by governmental authorities at the national, state, and local levels. Engel & Volkers franchisees must also comply with wage, hour, and other labor laws.
Engel & Volkers franchisees are obligated to prepare and file all necessary tax returns and pay all taxes related to their Residential Real Estate Brokerage. They must ensure that they have all the required forms of governmental approval to offer and sell services and products that are part of the Engel & Volkers system, both now and in the future. Franchisees are also responsible for paying all taxes, fines, fees, and assessments associated with the operation of their business before they become delinquent.
Engel & Volkers requires franchisees to notify the franchisor in writing within five days of any action, suit, proceeding, order, writ, injunction, award, or decree from any court or governmental agency that could negatively impact their operation or financial condition. This ensures that Engel & Volkers is kept informed of any potential issues that could affect the franchise's compliance or performance. Franchisees must operate their franchised business in strict compliance with all applicable laws and regulations.