Can the Engel & Volkers franchisor modify the System Documentation, and if so, under what conditions?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The System Documentation may be modified by Franchisor in its sole business judgment at any time.
12.1.1 The parties hereby mutually agree that it may be necessary to adapt the ENGEL & VÖLKERS System, either on a temporary or a permanent basis, due to changing market conditions. In its sole business judgment, the Franchisor may take any steps it deems necessary to adapt and modify the ENGEL & VÖLKERS System, the Integrated Product Suite, the System Documentation and the Trademarks, and the required equipment, technology, signs, trade dress and other business characteristics Franchisee will be required to adhere to (subject to the limitations set forth in this Agreement), to such events or changes in market conditions and other developments occurring at any given time; provided, however, that the cost to Franchisee for adaptations and modifications shall not be unreasonable. Franchisee acknowledges that some aspects of the ENGEL & VÖLKERS System, such as modifications relating to computer systems and technology, may need frequent upgrades and changes. Franchisor will advise Franchisee in writing or by electronic transmission of any amendments, additions to and/or deletions from or substitutions for the System Documentation. Franchisee hereby undertakes to make corresponding amendments to its versions of the System Documentation at its own expense as soon as practicable on receipt of notification of these amendments, and to comply with the requirements of the System Documentation as it may be revised from time to time. Franchisee acknowledges that Franchisor has developed, and may from time to time develop, programs and designations that are only available to franchisees who meet certain criteria and that Franchisor may make adaptations and modifications to the ENGEL & VÖLKERS System related to such programs and designations. Franchisee further acknowledges and agrees that entering into this Agreement does not require Franchisor to make adaptations and modifications to the ENGEL & VÖLKERS System related to such programs and designations available to Franchisee, or entitle Franchisee to participate in such programs or obtain such designations. Franchisee will not have the right to require Franchisor to disclose any such program, designation, or variation or to
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the franchisor can modify the System Documentation in its sole business judgment at any time. This means Engel & Volkers has the right to make changes to the rules, standards, methods, procedures, and specifications outlined in the System Documentation as it sees fit. These changes can be communicated through the System Documentation itself or via written or electronic media. Franchisees must adhere to the most recent versions of the System Documentation, with the master version kept at Engel & Volkers' head office taking precedence in case of any discrepancies.
Engel & Volkers may also adapt and modify the Engel & Volkers System, the Integrated Product Suite, the System Documentation, and the Trademarks due to changing market conditions. These modifications can also extend to required equipment, technology, signs, trade dress, and other business characteristics. While Engel & Volkers has broad discretion in making these changes, the cost to the franchisee for adaptations and modifications must not be unreasonable. Franchisees are responsible for making corresponding amendments to their versions of the System Documentation at their own expense upon receiving notification of these changes.
These modifications may also include programs and designations that are only available to franchisees who meet certain criteria. Engel & Volkers is not obligated to make these programs or designations available to all franchisees. Furthermore, Engel & Volkers can adapt the Engel & Volkers System to the specific conditions of a particular market area, considering factors such as business potential, population, and existing business practices. Franchisees should be aware that these adaptations and modifications may require additional capital investment or lead to higher operating costs. Franchisees are expected to exchange ideas and suggestions for improvements to the Engel & Volkers System and to share their experiences with the system to benefit the entire franchise network.