For Engel & Volkers, what information must be provided for each guarantor?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a business entity, e.g., corporation, partnership or limited liability company, Franchisee's principal owners must be named in Appendix 5 (hereinafter called the "Principals"). A Principal is an "owner" that owns ten percent (10%) or more of Franchisee. The Principals will each sign the Principal's Guarantee and Assumption of Obligations attached as Appendix 4 to this Agreement. If the Principal is in a community property state or for other reasons determined by Franchisor, the Principal's spouse may also be required to sign the Guarantee form. If any Principals change, Franchisee must notify and provide an updated list of all Principals to Franchisor immediately.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, if the franchisee is a business entity such as a corporation, partnership, or limited liability company, the principal owners must be listed in Appendix 5. A principal owner is defined as someone owning 10% or more of the franchisee. These principals are required to sign the Principal's Guarantee and Assumption of Obligations, which is attached as Appendix 4 to the Franchise Agreement.
Furthermore, if a principal resides in a community property state, or for other reasons determined by Engel & Volkers, the principal's spouse may also be required to sign the guarantee form. The franchisee is obligated to notify Engel & Volkers immediately and provide an updated list of all principals if there are any changes to the principals.
These measures ensure that Engel & Volkers has a clear understanding of who the responsible parties are within a franchisee's business entity and that these individuals are personally committed to upholding the obligations of the Franchise Agreement. This is a common practice in franchising to provide an additional layer of security for the franchisor.