Does operating a Limited Purpose Sales Location affect the Engel & Volkers franchisee's obligation to establish and operate an Approved 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. |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, establishing and operating a Limited Purpose Administrative Location does not remove or change the franchisee's obligation to establish and operate an Approved Location as required in the Franchise Agreement. The addendum for the Limited Purpose Administrative Location serves as an addition to the existing Franchise Agreement, with all original terms and conditions remaining in effect unless specifically amended within the addendum.
This means that an Engel & Volkers franchisee must still fulfill all requirements related to their Approved Location, regardless of whether they also operate a Limited Purpose Administrative Location. The Approved Location is the primary place of business for conducting real estate brokerage activities under the Engel & Volkers System. The Limited Purpose Administrative Location is only for housing administrative and support personnel.
This distinction is important for prospective franchisees to understand, as it clarifies that operating an additional administrative location does not substitute for the obligations tied to the main franchised business location. Franchisees need to budget and plan for both locations separately, ensuring full compliance with Engel & Volkers' standards and requirements for each.