Does Engel & Volkers make any representations regarding a franchisee's ability to procure required licenses or permits?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ial Real Estate Brokerage location and exterior brokerage designs (renderings) that are compliant with the ENGEL & VÖLKERS' System and System Documentation and that failure to do so will be a material breach of this Agreement. Franchisee hereby agrees not to encourage or permit any activities in its Residential Real Estate Brokerage which are incompatible with this Agreement, the ENGEL & VÖLKERS System or with the type of properties covered by this Agreement. Any exceptions to this rule shall require the prior written consent of Franchisor.
- 6.7 Laws and Regulations: Franchisee hereby agrees to observe and obey all federal, state and local laws, official regulations and decrees applicable in the state where its Approved Location is located, as well as anywhere else where Franchisee conducts business pursuant to this Agreement.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are responsible for obtaining all necessary licenses and permits to operate their business. Engel & Volkers requires franchisees to adhere to all federal, state, and local laws, regulations, and decrees applicable in the state where their Approved Location is situated, as well as anywhere else they conduct business under the agreement. This encompasses licensing as a real estate broker and any other licenses and permits necessary for their business operations.
Engel & Volkers requires franchisees to provide a current copy of their real estate broker license annually, no later than January 31st of each year. Franchisees must also ensure their Residential Real Estate Brokerage location and exterior designs comply with Engel & Volkers' system and documentation, with failure to do so constituting a material breach of the agreement.
Furthermore, if Engel & Volkers enters into exclusive cooperation arrangements with service companies that require additional licenses for franchisees to comply with industry regulations, the franchisee acknowledges that obtaining these additional licenses is their responsibility. This requirement ensures that franchisees operate legally and ethically, maintaining the integrity and reputation of the Engel & Volkers brand.