Does Engel & Volkers organize exchanges of information and experience among franchisees?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
5.1 Services: Franchisor will provide the following services to Franchisee under this Agreement:
5.1.1 Access to the ENGEL & VÖLKERS international network;
5.1.2 Training courses for Franchisee in accordance with Section 9;
5.1.3 Administrative, technical, and marketing support in connection with the use of the ENGEL & VÖLKERS System;
5.1.4 Access to the System Documentation, which contain Franchisor's recommended methods, specifications, procedures, and products for operation of Franchisee's Residential Real Estate Brokerage under the ENGEL & VÖLKERS System.
Franchisor reserves the right to make changes in the System Documentation from time to time;
5.1.5 Organizing exchanges of information and experience among franchisees;
5.1.6 Make Franchisor's proprietary Integrated Product Suite available and integrate Franchisee into the ENGEL & VÖLKERS information technology network; and
5.1.7 Optional programs, designations and services that Franchisor may develop from time to time and make available to qualifying franchisees.
5.2 Delegation of Services: Franchisor shall be entitled to delegate performance of services to be provided under this Agreement to qualified third parties.
The ongoing Royalty payment stipulated in Section 14.2 will cover the services provided by Franchisor, except Franchisee will have to pay for services of third parties subject to such third parties' or Franchisor's then current price lists (for example, additional training and GG Magazine advertising, and for the cost of marketing materials).
Failure on Franchisee's part to avail itself of any services shall not affect the amount of the Royalty payments.
Each of these price lists (hereinafter called the "Price Lists") are subject to revision at any time by the third party or by Franchisor.
Franchisee will pay the prices set forth in the respective Price List then current at the time the services are ordered.
Franchisor will periodically provide Franchisee with a separate price list for training, the GG Magazine advertising, and marketing articles.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers organizes exchanges of information and experience among franchisees. Specifically, Engel & Volkers offers this as one of the services they provide to franchisees under the Franchise Agreement. This is part of a broader package of support that includes access to their international network, training courses, administrative, technical, and marketing support, and access to the System Documentation. Engel & Volkers also makes its proprietary Integrated Product Suite available to franchisees.
Engel & Volkers retains the right to delegate the performance of these services to qualified third parties. The ongoing royalty payments cover the services provided by Engel & Volkers, but franchisees may need to pay extra for third-party services based on their price lists, such as additional training or advertising in GG Magazine. Franchisees are still obligated to pay the full royalty amount even if they don't use all the available services.
In addition to these organized exchanges, the FDD also states that the franchisee agrees to inform Engel & Volkers of all experience gained during the use of the Engel & Volkers system. The franchisee also agrees to allow Engel & Volkers and other Engel & Volkers franchisees to use the know-how gained from its experience free of charge. The parties mutually agree to exchange ideas and suggestions for amendments and improvements to the Engel & Volkers System.