If Engel & Volkers determines variances for other franchisees, does that grant the franchisee any rights?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
26.13.3 Franchisee is aware of the fact that other present or future franchisees may operate under different forms of agreement(s), and consequently that Franchisor's obligations and rights with respect to its various franchisees may differ materially
in certain circumstances. Any such variances Franchisor determines for other franchisees, do not grant Franchisee any rights or entitle Franchisee to request a similar modification under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the fact that Engel & Volkers may determine variances for other franchisees does not grant any rights to the franchisee, nor does it entitle the franchisee to request a similar modification under the Franchise Agreement. This acknowledgement is part of the agreement that the franchisee signs, confirming they understand that other franchisees may operate under different agreement terms.
This clause is included to protect Engel & Volkers from franchisees claiming entitlement to the same benefits or modifications offered to others. Franchise agreements can vary based on numerous factors, including market conditions, franchisee experience, and negotiated terms. This provision clarifies that franchisees cannot automatically demand parity with other franchisees' agreements.
For a prospective Engel & Volkers franchisee, this means understanding that the terms of their franchise agreement are specific to them and their circumstances. They cannot assume that they will receive the same benefits or modifications as other franchisees, even if those franchisees operate in similar markets. It is important to carefully review and negotiate the terms of the franchise agreement before signing, as the franchisor is not obligated to provide the same terms to all franchisees.