What is the length of the initial franchise term for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise | §19.1 | 10 years |
| term | ||
| b. Renewal or extension of | §§19.2, 19.3 | 1 period of 10 years |
| the term | ||
| c. Requirements for franchisee to renew or extend | §§19.2, 19.3 | Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the initial franchise term is 10 years, as detailed in Section 19.1 of the Franchise Agreement. This means a new franchisee will operate their Engel & Volkers franchise under the terms of the agreement for a decade before needing to consider renewal.
The length of the franchise term is a critical factor for prospective franchisees. A 10-year term provides a reasonable period to establish the business, recoup initial investments, and generate profits. It is fairly standard within the franchise industry, offering a balance between the franchisee's need for security and the franchisor's need to maintain brand standards and evolve the system.
At the end of the initial term, the Engel & Volkers franchisee has the option to renew the agreement for one additional term of 10 years. However, this renewal is contingent upon meeting certain requirements, including providing written notice at least six months before the expiration of the current term, complying with all provisions of the Franchise Agreement, signing the then-current form of the Franchise Agreement, signing a general release, and paying a renewal fee. The franchisee may be asked to sign a contract with materially different terms and conditions than their original contract.