Can Engel & Volkers grant a new franchisee location near the Administrative Location?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6. No Limitation on Franchisor. Notwithstanding anything to the contrary in the FA, nothing in this Administrative Location Addendum will limit or prevent Franchisor from granting a new franchisee location near the Administrative Location, as long as such new franchisee location is outside of Franchisee's Protected Area.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers has the right to grant a new franchise location near an existing franchisee's Administrative Location. However, this is conditional. Engel & Volkers can only grant a new franchise location near the Administrative Location if the new location falls outside of the existing franchisee's protected area.
This clause protects the existing franchisee's exclusive rights within their designated territory. The protected area ensures that another Engel & Volkers franchise cannot directly compete within that specific geographic boundary. This provision is included in the Administrative Location Addendum to the franchise agreement.
It is important to note that the franchisee is obligated to keep the details of the Administrative Location Addendum confidential. Any breach of this confidentiality agreement could render the addendum null and void, at Engel & Volkers's discretion. This confidentiality extends to all provisions within the addendum, safeguarding Engel & Volkers's strategic decisions and territorial agreements.