For Engel & Volkers, what is the permitted use of the premises for the franchisee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Use of Premises: Franchisee shall use its premises solely for the operation of the Residential Real Estate Brokerage and related promotional activities, shall keep the real estate brokerage open during local normal business hours for residential real estate brokerage services. Franchisee shall not use the real estate brokerage premises for any other purpose or other activity at any time.
- 3.3 Residential Real Estate Brokerage Design: Franchisee shall bear the full cost of constructing, remodeling and equipping its own Residential Real Estate Brokerage, which shall be designed in accordance with the plans and standards set out in the System Documentation. All of the furnishings and fittings of the Brokerage Design must be maintained in a clean, well-cared-for condition at all times. Franchisee hereby agrees to arrange for any necessary repairs, redecorations and replacements for its own real estate brokerage without delay and at its own expense. Franchisee is not permitted to make any modifications to the Brokerage Design without the prior written consent of Franchisor.
- 3.4 Necessary Alterations: The parties mutually recognize that rapid changes in markets may compel them to make alterations to the appearance of Residential Real Estate Brokerage in the interests of all those involved. Franchisee hereby agrees to make any alterations and/or additions to the external and internal appearance of the Residential Real Estate Brokerage at its own expense in all cases where Franchisor regards these as necessary for the purpose of adjustment to market requirements, the needs of the market or the activity of competitors. However, this shall only apply in cases where the majority of similarly situated franchisees of Franchisor are also required to make these alterations uniformly in accordance with the ENGEL & VÖLKERS System.
- 3.5 Grand Opening Celebration: Within three (3) months of opening its Residential Real Estate Brokerage, Franchisee will hold a grand opening public relations event at its own expense in accordance with the guidelines set out in the System Documentation.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must use their premises solely for operating the Residential Real Estate Brokerage and conducting related promotional activities. The real estate brokerage must be open during local normal business hours for residential real estate brokerage services. Engel & Volkers explicitly prohibits using the premises for any other purpose or activity at any time.
Engel & Volkers requires franchisees to maintain the Residential Real Estate Brokerage in accordance with the plans and standards outlined in the System Documentation. Franchisees are responsible for covering the full costs of constructing, remodeling, and equipping their own Residential Real Estate Brokerage. The furnishings and fittings must be kept clean and well-maintained at all times, and franchisees must arrange for necessary repairs, redecorations, and replacements without delay and at their own expense. Franchisees are not allowed to make any modifications to the Brokerage Design without prior written consent from Engel & Volkers.
Engel & Volkers may require franchisees to make alterations or additions to the external and internal appearance of the Residential Real Estate Brokerage to adjust to market requirements, the needs of the market, or the activity of competitors. These alterations are only required if the majority of similarly situated franchisees are also required to make these alterations uniformly in accordance with the Engel & Volkers System. Franchisees are also required to hold a grand opening public relations event within three months of opening their Residential Real Estate Brokerage, following the guidelines set out in the System Documentation.