Is the inability to properly manage the Engel & Volkers franchised business operation for a prolonged period considered a curable default?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the inability to properly manage the franchised business operation for a prolonged period is considered a curable default. Specifically, Engel & Volkers will provide the franchisee with written notice of the default, and the franchisee then has thirty (30) calendar days to correct the issue and provide evidence of the correction to Engel & Volkers. If the franchisee rectifies the default within this 30-day period, the franchise agreement will not be terminated on those grounds.

This thirty-day cure period provides an opportunity for Engel & Volkers franchisees to address management deficiencies without immediately facing termination of their franchise agreement. It is important to note that this cure period applies specifically to the inability to properly manage the business for a prolonged period, and other defaults may have different cure periods or consequences.

However, if the franchisee fails to cure the default within the specified timeframe, Engel & Volkers has the right to terminate the agreement immediately upon the expiration of the 30-day period, unless Engel & Volkers expressly agrees otherwise in writing. This highlights the importance of franchisees taking prompt action upon receiving a notice of default to protect their investment and maintain their franchise rights. Franchisees should also be aware that committing the same act of default again within six months after curing the initial default can lead to further consequences, as outlined in the FDD.