Does operating an Engel & Volkers Administrative Location guarantee the grant of another limited purpose location?
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. | |
| 1.3 | Franchisee may not relocate the Administrative Location without Franchisors prior |
| written consent. Operating this Administrative Location does not guarantee Franchisor's | |
| consent to grant another limited purpose location or extend the Term of this | |
| Administrative Location (as set forth hereinafter), which remains at Franchisor's sole | |
| discretion. | |
| 1.4 | Franchisee further acknowledges and agrees that it has no right of first refusal, option or |
| similar rights to acquire additional franchises, or a right to operate any additional | |
| administrative location, which Franchisor grants in its sole discretion. |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, operating an Administrative Location does not guarantee the grant of another limited purpose location. The decision to grant another limited purpose location remains at Engel & Volkers' sole discretion.
Specifically, while a franchisee may request to operate an additional location within their protected area for administrative and support personnel, Engel & Volkers retains the right to decide whether to grant such a location. The Administrative Location Addendum outlines the terms for operating this type of location, but it explicitly states that operating one does not obligate Engel & Volkers to approve any future requests for additional locations or extend the term of the existing Administrative Location.
Furthermore, the franchisee acknowledges that they have no right of first refusal, option, or similar rights to acquire additional franchises or operate additional administrative locations. Engel & Volkers maintains sole discretion in granting these rights. This means that even with a successful Administrative Location, a franchisee must still apply and be approved for any further expansion, with no guarantee of approval.
This policy provides Engel & Volkers with flexibility in managing its franchise network and ensuring that any expansion aligns with its overall business strategy. For a prospective franchisee, this highlights the importance of not assuming future expansion opportunities based on the operation of an Administrative Location and understanding that each location is subject to individual approval.