Do Engel & Volkers lease agreements contain any material residual value guarantees or material restrictive covenants?

According to Engel & Volkers's 2025 Franchise Disclosure Document, the company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. This information is found within the summary of significant accounting policies related to leases. This means that Engel & Volkers is not obligated to guarantee a specific value of the leased property at the end of the lease term, nor are they subject to significant restrictions outlined in the lease agreements.

For a prospective Engel & Volkers franchisee, this is a positive aspect. The absence of residual value guarantees means that the franchisee will not be financially responsible for any potential decline in the property's value at the end of the lease. Similarly, the lack of material restrictive covenants provides the franchisee with more operational flexibility, as they are not bound by stringent limitations within the lease agreement.

It is important for potential franchisees to still carefully review all lease agreements and understand all terms and conditions. While the FDD states that there are no material residual value guarantees or material restrictive covenants, other standard lease terms will still apply. Understanding these terms is crucial for managing the financial and operational aspects of the franchise.