Does the Engel & Volkers Limited Purpose Sales Location Addendum replace the franchisee's obligation to establish and operate an Approved Location as set forth in the Franchise Agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS | LIMITED PURPOSE ADMINSTRATIVE LOCATION ADDENDUM ("Administrative Location Addendum") is made and entered into this (the "Effective Date") by and between ENGEL & VÖLKERS AMERICAS, INC., a Delaware corporation ("Franchisor"), and, a ("Franchisee"). |
|---|---|
| as set forth in the FA. | WHEREAS, Franchisor and Franchisee entered into a Franchise Agreement, dated (the |
| "FA") providing Franchisee with the right to use the ENGEL & VÖLKERS System to operate an Engel & | |
| Völkers Residential Real Estate Brokerage and conduct the franchised Business at an Approved Location | |
| WHEREAS, Franchisee has requested to operate an additional location within Franchisee's | |
| Protected Area for the limited purpose of housing Franchisee's administrative and support personnel and | |
| related administrative tasks for Franchisee's franchised Business. | |
| FA. | NOW THEREFORE, in consideration of the provisions in the FA, the promises in this |
| Administrative Location Addendum, and other good and valuable consideration, the delivery, receipt, and | |
| sufficiency of which are acknowledged, the parties mutually agree as set forth below. All capitalized terms | |
| not defined in this Administrative Location Addendum shall have the respective meanings set forth in the | |
| 1. | Grant of Limited Purpose Administrative Location: |
| 1.1 | Franchisor hereby grants Franchisee the non-exclusive, non-transferrable right to |
| establish and operate a Limited Purpose Administrative Location at, and only at the | |
| following | |
| location: | |
| (the | |
| "Administrative | |
| Location") within Franchisee's Protected Area subject to the terms of this Administrative | |
| Location Addendum and the FA. | |
| 1.2 | Franchisee acknowledges and agrees that the Administrative Location is not deemed to |
| be nor does it constitute, replace or otherwise amend Franchisee's obligation to establish | |
| and operate an Approved Location as set forth in the FA. |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Limited Purpose Administrative Location Addendum does not replace the franchisee's obligation to establish and operate an Approved Location as outlined in the Franchise Agreement. The addendum allows a franchisee to operate an additional location within their protected area, but specifically for administrative and support personnel.
The Engel & Volkers Administrative Location is strictly for housing administrative staff and performing administrative tasks related to the franchised business. The franchisee cannot use this location for any other purpose, including direct real estate transactions or client interactions. Furthermore, the franchisee cannot display Engel & Volkers trademarks or identify the location as an Engel & Volkers location.
This additional location requires a one-time, non-refundable fee of $2,500. The franchisee is responsible for all costs associated with setting up and maintaining the Administrative Location. The addendum serves as an amendment to the existing Franchise Agreement, with all other terms and conditions of the Franchise Agreement remaining in effect unless specifically amended by the addendum.