Will Engel & Volkers inform franchisees of exclusive cooperation arrangements with service companies?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers will inform franchisees of any exclusive cooperation arrangements it has with service companies. These service companies may provide financial services, such as banks, insurance companies, or other vendors that offer services tailored for real estate professionals.
Engel & Volkers franchisees are then required to cooperate exclusively with these service companies, adhering to the terms and conditions outlined in the cooperation agreement between Engel & Volkers and the service companies. However, a franchisee can refuse cooperation if they have legitimate commercial or financial reasons for doing so.
The document also states that providing these services may require the franchisee to obtain additional licenses to comply with the laws regulating those industries. Engel & Volkers retains the right to any commissions or event sponsorships earned through this required cooperation. Franchisees can propose their own service companies or sponsoring vendors to Engel & Volkers, but this is subject to Engel & Volkers's prior written approval, which will be based on their business judgment.