What is Engel & Volkers' obligation regarding support to the franchisee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
entation that Franchisor will enter into any Systemwide Supply Contracts or other exclusive supply arrangements or, if Franchisor does so, that Franchisee would not otherwise be able to purchase the same programs, products and/or services at a lower price from another supplier. Franchisee agrees that, as between the parties hereto, Franchisor may add to, modify, substitute or discontinue Systemwide Supply Contracts or exclusive supply arrangements in the exercise of Franchisor's business judgment.
6. General Obligations of Franchisee
- 6.1 Independent Contractor: Franchisee is and shall be an independent contractor and nothing contained in this Agreement shall be construed to create a partnership, joint venture, agency, fiduciary, or employment relationship of any kind between the parties. Franchisee does not have the authority to bind or obligate Franchisor in any way by any promise or representation, except as specifically and expressly authorized by Franchisor in writing. Franchisee will exercise full and complete control over and have full responsibility for its franchised Business. Any education, support, advice or resources Franchisor provides to Franchisee in connection with the franchised Business is solely for the purpose of protecting the ENGEL & VÖLKERS System, including the Trademarks, and goodwill associated with the ENGEL & VÖLKERS System and assisting Franchisee in the operation of the franchised Business, and not for the purpose of controlling or in any way exercising or exerting control over Franchisee's decisions or the day-to-day operation of the franchised Business, including Franchisee's personnel-related decisions.
- 6.2 Personnel: Franchisee hereby agrees to employ only qualified personnel with background, experience and credentials customary under best practices and standards in the real estate brokerage industry. Franchisee and, if an entity, at least one of its officers, partners and/or managers, must be licensed as a real estate broker, and every employee, contractor, or Sales Advisor who is involved in real estate activities for Franchisee shall have a real estate broker, salesperson or other appropriate license, if and as required by applicable law, rules or regulations. These employees, contractors, and Sales Advisors must have attended an appropriate training course conducted by Franchisor and have passed related tests. Franchisee is responsible for ensuring that its real estate brokerage is open during local normal business hours for residential real estate brokerages. Franchisee shall be responsible for ensuring that its obligations under this Agreement are observed by its employees,
contractors, and Sales Advisors. Franchisee understands and agrees that Franchisor is not a party to Franchisee's employment contracts (neither as sole, nor as a joint employer) with its own staff and Sales Advisors, and Franchisee shall be solely liable for fulfillment of these contracts in every respect (e.g., deduction and remittance of income taxes, social security contributions, etc.). None of Franchisee's employees, contractors or Sales Advisors will be considered to be Franchisor's employees and Franchisee acknowledges that Franchisor is not in a position to exercise control over Franchisee's employees, contractors or Sales Advisors.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers offers support to franchisees, but primarily to protect the brand and assist in the operation of the franchised business. Engel & Volkers' support does not establish a relationship that would allow the franchisee to bind or obligate Engel & Volkers in any way, except as expressly authorized in writing. The franchisee maintains full control and responsibility for their franchised business. Any support, advice, or resources provided are not intended to control the franchisee's decisions or day-to-day operations, including personnel matters.
Engel & Volkers requires at least one person in an administrative role supporting the franchisee's Sales Advisors to attend the Engel & Volkers Support Path Training (SPT) before the opening date. The franchisee must ensure that at least one person working at the franchised business has attended SPT at all times. Franchisees, their staff, and Sales Advisors must also attend additional training courses as required by the Engel & Volkers training program. Engel & Volkers may develop training programs that apply only to certain franchisees and their staff. Training requirements and offerings may change over time, and Engel & Volkers is not obligated to maintain any specific training programs.
The franchisee is responsible for all costs associated with attending training courses, including travel, accommodation, food, and out-of-pocket expenses, as well as salaries or compensation for staff members or Sales Advisors. If the franchisee requests on-site training and Engel & Volkers agrees, the franchisee must pay the trainers' expenses for travel, accommodation, food, and other out-of-pocket costs. Engel & Volkers may provide support for regional public relations and general public relations activities, while the franchisee is responsible for their own local media public relations in compliance with Engel & Volkers System Documentation. Engel & Volkers will also provide copies of the GG Magazine for the Approved Location, with the cost borne by the National.