Is the intentional failure to use material features of the Engel & Volkers system a curable default?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Examples (without limitation) of defaults curable within thirty (30) days after notice include if Franchisee:
- 20.4.2 intentionally fails to make use of material features of the ENGEL & VÖLKERS System;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, intentionally failing to use material features of the Engel & Volkers system is a curable default. Specifically, Engel & Volkers will provide the franchisee with written notice of the default, and the franchisee will then have thirty (30) calendar days to cure the default. If the franchisee provides evidence of the cure to Engel & Volkers within that time, the franchise agreement will not be terminated on those grounds.
This means that if an Engel & Volkers franchisee is found to be intentionally not using key components of the Engel & Volkers system, they will be given a chance to correct the issue. This could include implementing specific marketing strategies, using required software, or adhering to brand standards. The franchisee must take action to demonstrate that they are now utilizing the system's features as intended within the 30-day cure period.
It is important to note that this cure period applies specifically to the intentional failure to use material features of the Engel & Volkers system. Other types of defaults may have different cure periods or may not be curable at all. Additionally, if the franchisee fails to cure the default within the 30-day period, Engel & Volkers has the right to terminate the franchise agreement.