Does Engel & Volkers guarantee that the franchisee will be able to obtain all necessary government approvals and licenses?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Residential Real Estate Brokerage. As between the parties hereto, it will be Franchisee's responsibility to promptly investigate the need for, seek and obtain all government and quasi-governmental approvals, consents and licenses required to commence operations of the Residential Real Estate Brokerage. Franchisor makes no representation or warranty that Franchisee will be able to do so.
- 26.11.2 Without limiting the generality of the requirements of this Section, Franchisee agrees to strictly comply with all applicable laws, rules or regulations of any
nation, state, or other political/governmental subdivision governing the franchised Business.
- 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.
- 26.11.5 Franchisee and its Principals understand the requirements of, and will abide by, all United States government economic sanctions requirements throughout the Term. Franchisee and its Principals represent and warrant that neither Franchisee nor any of its direct or indirect Principals, shareholders, owners, directors, managers, affiliates, employees or agents, nor any funding source Franchisee utilizes, is or will be identified on the list of the U.S. Treasury's Office of Foreign Assets Control (OFAC) or is or will be a person subject to trade restrictions under United States law, including (without limitation) the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the Trading with the Enemy Act, 50 U.S.C. App.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers does not guarantee that a franchisee will obtain all necessary government approvals and licenses. Instead, the franchise agreement stipulates that the franchisee is solely responsible for obtaining and maintaining all required licenses, permits, and governmental approvals needed to operate their Engel & Volkers residential real estate brokerage. This includes compliance with all applicable laws, rules, and regulations at the national, state, and local levels.
This requirement places the onus on the franchisee to ensure they meet all legal and regulatory obligations for their business. It is a standard practice in franchising for franchisees to be responsible for their own compliance with local laws and regulations. Engel & Volkers also requires the franchisee to provide them with a current copy of their real estate broker license annually, no later than January 31st, to ensure ongoing compliance.
Furthermore, the franchisee must notify Engel & Volkers in writing within five days of any action, suit, proceeding, order, writ, or decree from any court, agency, or governmental body that could adversely affect their operation or financial condition. This ensures that Engel & Volkers is kept informed of any potential legal or regulatory issues that could impact the franchise. The franchisee also agrees to operate in strict compliance with all applicable laws and regulations and to pay all related taxes, fines, and fees.
In addition, Engel & Volkers requires franchisees to comply with all United States government economic sanctions requirements throughout the term of the agreement. Franchisees must also represent and warrant that neither they nor any of their principals are identified on the U.S. Treasury's Office of Foreign Assets Control (OFAC) list or subject to trade restrictions under United States law. This demonstrates Engel & Volkers' commitment to adhering to all applicable laws and regulations and ensuring that its franchisees do the same.