Is an Engel & Volkers Limited Purpose Location considered a replacement for an Approved Location?

According to Engel & Volkers's 2025 Franchise Disclosure Document, a Limited Purpose Location is not considered a replacement for an Approved Location. The FDD specifies that an Engel & Volkers franchisee will operate from one Approved Location, which is detailed in Appendix 1 of the Franchise Agreement. This Approved Location grants the franchisee exclusivity within a Protected Area defined by zip codes, meaning Engel & Volkers will not authorize another franchise within that area during the agreement's term.

The document clarifies that Limited Purpose Locations serve specific functions, such as housing overflow administrative staff or providing sales advisors a base for development projects. These locations require Engel & Volkers's prior written approval and are formalized through a Limited Purpose Sales Location Addendum or Limited Purpose Administrative Location Addendum. It is explicitly stated that a Limited Purpose Location does not replace an Approved Location.

This distinction is important for prospective franchisees because it confirms that the primary, exclusive operating territory is tied to the Approved Location. Franchisees cannot substitute a Limited Purpose Location for their main, Approved Location. Furthermore, franchisees do not gain additional rights to acquire further franchises or Limited Purpose Locations simply by operating a Limited Purpose Location. This ensures that the exclusivity granted to the Approved Location remains the cornerstone of the franchise agreement, while Limited Purpose Locations serve as supplementary, approved extensions of the main operation.