Is the grant of an Engel & Volkers Administrative Location exclusive or non-exclusive?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS | LIMITED PURPOSE ADMINSTRATIVE LOCATION ADDENDUM ("Administrative Location Addendum") is made and entered into this (the "Effective Date") by and between ENGEL & VÖLKERS AMERICAS, INC., a Delaware corporation ("Franchisor"), and, a ("Franchisee"). |
|---|---|
| as set forth in the FA. | WHEREAS, Franchisor and Franchisee entered into a Franchise Agreement, dated (the |
| "FA") providing Franchisee with the right to use the ENGEL & VÖLKERS System to operate an Engel & | |
| Völkers Residential Real Estate Brokerage and conduct the franchised Business at an Approved Location | |
| WHEREAS, Franchisee has requested to operate an additional location within Franchisee's | |
| Protected Area for the limited purpose of housing Franchisee's administrative and support personnel and | |
| related administrative tasks for Franchisee's franchised Business. | |
| FA. | NOW THEREFORE, in consideration of the provisions in the FA, the promises in this |
| Administrative Location Addendum, and other good and valuable consideration, the delivery, receipt, and | |
| sufficiency of which are acknowledged, the parties mutually agree as set forth below. All capitalized terms | |
| not defined in this Administrative Location Addendum shall have the respective meanings set forth in the | |
| 1. | Grant of Limited Purpose Administrative Location: |
| 1.1 | Franchisor hereby grants Franchisee the non-exclusive, non-transferrable right to |
| establish and operate a Limited Purpose Administrative Location at, and only at the | |
| following | |
| location: | |
| (the | |
| "Administrative | |
| Location") within Franchisee's Protected Area subject to the terms of this Administrative | |
| Location Addendum and the FA. | |
| 1.2 | Franchisee acknowledges and agrees that the Administrative Location is not deemed to |
| be nor does it constitute, replace or otherwise amend Franchisee's obligation to establish | |
| and operate an Approved Location as set forth in the FA. |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the grant of a Limited Purpose Administrative Location is non-exclusive and non-transferrable. Specifically, Engel & Volkers grants the franchisee the right to establish and operate this type of location within the franchisee's protected area, but this is subject to the terms outlined in the Administrative Location Addendum and the Franchise Agreement.
This means that while a franchisee can operate an administrative location, it does not prevent Engel & Volkers from granting other similar locations to other franchisees or operating its own locations nearby. The franchisee acknowledges that this administrative location does not replace or amend their obligation to maintain an approved location as per the Franchise Agreement. Furthermore, the franchisee cannot relocate the administrative location without prior written consent from Engel & Volkers, and operating this location does not guarantee the grant of additional locations or extend the term of the agreement.
Additionally, the franchisee has no right of first refusal or option to acquire additional franchises or operate additional administrative locations. These rights remain at Engel & Volkers' discretion. This non-exclusive grant allows Engel & Volkers to maintain flexibility in expanding its network and providing support services to other franchisees, even within the same protected area. This also means that Engel & Volkers retains control over the number and placement of administrative locations, ensuring strategic alignment with its overall business objectives.