For Engel & Volkers, what is the limited purpose for which the Limited Purpose Sales Location premises must be used?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
und contributions on Gross Revenues derived from real estate brokerage services of this Limited Purpose Sales Office, including any other fees due under the FA on Gross Revenues, if applicable, via the Gross Revenue Reporting Location and pursuant to Section 14 of the FA, as applicable.
- 3. Design. The Limited Purpose Sales Location interior and exterior design must be in accordance with the requirements of the New Development for the operation of such on-site sales presence and must also comply with the authorized use of the Trademarks and the System Documentation, as may be amended from time to time. Franchisee shall bear the full cost of constructing, remodeling, and equipping its Limited Purpose Sales Location, as applicable.
4. Use of Premises/Operations.
- 4.1 Franchisee shall use the Limited Purpose Sales Location premises solely for the limited purpose of performing the real estate brokerage services for the sale of real property in the New Development commonly known as _____________________________. For purposes of this Limited Purpose Sales Addendum, "New Development" shall include residential single- or multi-family homes, condominiums or co-op units in newly built communities or buildings. Franchisee shall not use the premises for any other purpose or activity at any time. Franchisee shall keep its residential real estate brokerage services permitted under the FA separate and may not conduct other real estate brokerage services under the operation of its franchised Business from the Limited Purpose Sales Location.
- 4.2 Franchisee may only permit Sales Advisors that are under contract to represent the New Development's real property to use the Limited Purpose Sales Location's address on business cards, websites or other on-line presence, social media, marketing, or other promotional materials, whether printed or on-line. Furthermore, such Sales Advisors shall only be permitted to use the Limited Purpose Sales Location address when conducting its real estate business services for the New Development, and only if required or permitted by such New Development.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a Limited Purpose Sales Location must be used solely for performing real estate brokerage services for the sale of real property in a New Development, which includes newly built residential single- or multi-family homes, condominiums, or co-op units. Engel & Volkers franchisees are explicitly prohibited from using the premises for any other purpose or activity. They must also keep their general residential real estate brokerage services separate from the activities conducted at the Limited Purpose Sales Location.
Engel & Volkers permits only Sales Advisors under contract to represent the New Development's real property to use the Limited Purpose Sales Location's address on business cards, websites, or other marketing materials. Even then, such use is restricted to conducting real estate business services specifically for the New Development and only if required or permitted by the New Development itself.
Engel & Volkers franchisees must adhere to all terms and conditions of their agreement with the New Development and operate the Limited Purpose Sales Location according to the standards set by the New Development. However, the franchisee cannot operate the Limited Purpose Sales Location in any way that contradicts the Engel & Volkers Franchise Agreement, the Limited Purpose Sales Location Addendum, or the System Documentation. Furthermore, franchisees are prohibited from entering into any agreements with the New Development that conflict with their obligations under the Franchise Agreement or with Engel & Volkers' rights or obligations.