Does Engel & Volkers guarantee that all franchisees will operate under the same agreement terms?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
grant the same or a similar variation to Franchisee. Furthermore, Franchisor may adapt the ENGEL & VÖLKERS System to the peculiarities of a particular market area or its circumstances, business potential, population, existing business practices, any other condition which Franchisor considers important to the successful operation of Franchisee's business, or due to other events or other nonarbitrary distinctions, and whether or not they arise to the level of a force majeure event and whether or not they are foreseeable may Franchisee understands and agrees that adaptations and modifications to the ENGEL & VÖLKERS System may obligate Franchisee to invest additional capital or incur higher operating costs.
- 12.1.2 Franchisor will inform Franchisee of any exclusive cooperation arrangements entered into by Franchisor with services companies, e.g., providing for financial services, such as banks, insurance companies or other vendors offering services tailored for use by real estate professionals.
In such cases, Franchisee shall then cooperate exclusively with these services companies in accordance with the terms and conditions of the cooperation agreement between Franchisor and those companies, except in cases where Franchisee has legitimate commercial or financial reasons for refusing such cooperation.
Franchisee acknowledges that provisions of these kinds of services may require Franchisee to obtain additional licenses to comply with the laws regulating those industries.
Franchisor will have the right to retain any commissions or event sponsorships earned due to any such cooperation required by Franchisee.
Franchisee may propose service companies or sponsoring vendors to Franchisor for use by Franchisee, subject, however, to Franchisor's prior written approval.
If Franchisee makes such a proposal, it shall be in writing with sufficient information for Franchisor to make a determination whether such service company or sponsoring vendor and its services are acceptable.
Such determination shall be in Franchisor's business judgment.
- 12.2 Exchange of Information: The parties hereby mutually agree to exchange ideas and suggestions for amendments and improvements to the ENGEL & VÖLKERS System.
Franchisee hereby agrees to inform Franchisor of all experience gained during use of the ENGEL & VÖLKERS System and the rights under this Agreement, and to allow Franchisor and other ENGEL & VÖLKERS franchisees to use the know-how gained from its experience free of charge.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers may adapt its system to suit specific market conditions, which could lead to variations in franchise agreement terms. The FDD states that Engel & Volkers may adapt the system to the peculiarities of a particular market area or its circumstances, business potential, population, existing business practices, any other condition which Franchisor considers important to the successful operation of Franchisee's business, or due to other events or other nonarbitrary distinctions. These adaptations and modifications may require the franchisee to invest additional capital or incur higher operating costs.
Engel & Volkers also has the right to inform franchisees of any exclusive cooperation arrangements with service companies, such as banks or insurance companies. Franchisees are generally required to cooperate exclusively with these service companies under the terms and conditions of the cooperation agreement, unless they have legitimate commercial or financial reasons for refusing such cooperation. Engel & Volkers retains the right to any commissions or event sponsorships earned due to this required cooperation.
While franchisees can suggest service companies or sponsoring vendors, Engel & Volkers retains the right to approve or disapprove these suggestions based on its business judgment. Franchisees are also expected to exchange ideas and suggestions for improvements to the Engel & Volkers system and to share their experiences with the system with Engel & Volkers and other franchisees. These provisions suggest that while there are standard terms, Engel & Volkers retains the flexibility to modify the system and agreements based on specific circumstances.