What are Engel & Volkers Limited Purpose Locations typically used for?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We may grant you the right to open and operate one or more limited purpose locations ("Limited Purpose Location(s)"), which will generally be located in your Protected Area and which will be subject to your continued complaince with the terms of your franchise agrement and certain standards as set forth in the System Documentation, as amended from time to time. Limited Purpose Locations are typically either locations for overflow administrative staff, or for sales advisors to use in connection with specific development projects. You must request our approval to operate a Limited Purpose Loction in writing in advance and provide sufficient information, as specified by us from time to time in the System Documentation, to support your request. Within 30 days after receiving such a request, we will, at our discretion, approve or deny your request. You will not receive any additional territorial rights with our aproval of a Limited Purpose Location. You may not operate a Limited Purpose Location without our aproval and unless we sign an Limited Purpose Sales Location Addendum or Limited Purpose Administrative Location Addendum with you for each Limited Purpose Location. You should not sign a lease or incur any other expenses or liabilities before an Limited Purpose Location Addendum for the proposed location is executed. A Limited Purpose Location is not and does not replace an Approved Location (as defined in the Franchise Agreement) and you will have no right of first refusal, option or similar rights to acquire additional franchises or for additional Limited Purpose Locations.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Limited Purpose Locations are typically designated for specific functions within a franchisee's Protected Area. These locations serve as either space for overflow administrative staff or as temporary offices for sales advisors working on particular development projects. This allows Engel & Volkers franchisees to expand their operational capacity without the full commitment of establishing a new, full-fledged brokerage.
To operate a Limited Purpose Location, an Engel & Volkers franchisee must first obtain written approval from the franchisor. The franchisee needs to provide sufficient information to support their request, as outlined in the System Documentation. Engel & Volkers has 30 days to either approve or deny the request. It's crucial that franchisees do not sign any leases or incur expenses before receiving approval and executing a Limited Purpose Sales Location Addendum or Limited Purpose Administrative Location Addendum.
It is important to note that a Limited Purpose Location does not replace an Approved Location, which is the primary location specified in the Franchise Agreement. Furthermore, franchisees do not gain additional territorial rights through a Limited Purpose Location, nor do they have any right of first refusal or option to acquire additional franchises or Limited Purpose Locations. This structure allows Engel & Volkers to maintain control over territorial expansion while providing franchisees with flexible options for managing staff and projects.