How long does Engel & Volkers have to conduct due diligence after receiving the Offer for assignment?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.5.2 Franchisor shall have sixty (60) days following its receipt of the Offer (or, if Franchisor requests additional information, sixty (60) days following receipt of the additional information) to conduct due diligence into the transaction.
Franchisor's due diligence will be of the type, nature and scope customary for transactions similar to the proposed transaction at issue and, in connection with the due diligence, Franchisee agrees to make available to Franchisor immediately upon demand all information, data, books, or written or electronic records which Franchisor may reasonably request and, as well, shall make available to Franchisor for inquiry each Principal and Guarantor of the franchised Business, the Business Manager and any other personnel Franchisor specifies.
As well, all of the requirements of Franchisee's proposed assignee specified above in Section 22.3 (Assignment by Franchisee – Sale to Third Party) of this Agreement must be complied with.
- 22.5.3 Within sixty (60) days after Franchisor's receipt of the Offer (or, if Franchisor requests additional information, within sixty (60) days after receipt of the additional information), Franchisor may either consent or withhold consent to the assignment, in accordance with this Section, or at Franchisor's option accept the assignment to itself or to its designee, on the terms and conditions specified in the Offer.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, if a franchisee wishes to assign their equity or business assets to a third party, Engel & Volkers has a period to conduct due diligence. Specifically, Engel & Volkers has sixty (60) days to conduct due diligence into the transaction after receiving the Offer from the franchisee. If Engel & Volkers requests additional information, the due diligence period extends to sixty (60) days following receipt of that additional information.
Engel & Volkers's due diligence will be of the type, nature, and scope customary for similar transactions. The franchisee must provide all reasonably requested information, data, books, or records to Engel & Volkers immediately upon demand. The franchisee must also make available for inquiry each Principal and Guarantor of the franchised Business, the Business Manager, and any other personnel Engel & Volkers specifies.
Within the same sixty (60) day period after receiving the Offer (or after receiving additional information if requested), Engel & Volkers can either consent to or withhold consent to the assignment, or at its option, accept the assignment itself or to its designee on the terms specified in the Offer. This process ensures that Engel & Volkers maintains control over who enters its franchise system and that the terms of any transfer are acceptable to them.