What is the purpose of the Engel & Volkers Administrative Location Addendum?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
main in full force and effect. No references to the amendments contained herein need be
made in any instrument or document at any time referring to the FA and any such reference is deemed to be a reference to the FA as amended by this Limited Purpose Sales Location Addendum.
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this Limited Purpose Sales Location Addendum as of the day and year first above written.
ENGEL & VÖLKERS AMERICAS, INC. Its: Its: Its:
LIMITED PURPOSE ADMINISTRATIVE LOCATION ADDENDUM TO ENGEL & VÖLKERS FRANCHISE AGREEMENT
[Delete Limited Purpose Administrative Location Addendum, if not applicable]
LIMITED PURPOSE ADMINISTRATIVE LOCATION ADDENDUM TO ENGEL & VÖLKERS FRANCHISE AGREEMENT
| 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. |
- 2. Fees. Franchisee will pay to Franchisor for Franchisee's Administrative Location a one-time, non-refundable fee of $2,500 by wire transfer or by such other means as required by Franchisor, at the time of execution of this Administrative Location Addendum.
- 3. Design. The Administrative Location and/or any exterior signage or directories may not bear or display any of Franchisor's Trademarks or otherwise identify the Administrative Location as an Engel & Völkers location. Franchisee shall bear the full cost of constructing, remodeling, and equipping its Administrative Location. All of the furnishings and fittings of the Administrative Location must be maintained in an appropriate, clean, well-cared-for condition at all times.
4. Use of Premises/Operations.
- 4.1 Franchisee shall use its premises solely for the limited purpose of housing Franchisee's administrative and support personnel and performing administrative tasks for Franchisee franchised Business. Franchisee shall not use the premises for any other purpose or activity at any time. Franchisee will not permit public traffic, onsite client interactions or any real estate transactions at the Administrative Location and shall keep its residential real estate brokerage services permitted under the FA separate.
- 4.2 Franchisee may not use or permit its Sales Advisors to use the Administrative Location's address on Franchisee's or its Sales Advisor's business cards, websites or other on-line presence, social media, marketing, or other promotional materials, whether printed or online, used by Franchisee or its Sales Advisor's when conducting its real estate business services under the FA.
- 4.3 Franchisee will operate the Administrative Location in accordance with the standards as set forth in the System Documentation, as may be amended from time to time in Franchisor's sole discretion, and as part of its franchise Business and in compliance with the terms and conditions of the FA, as applicable and so far as not amended by this Administrative Location Addendum.
5. Term and Termination.
- 5.1 this Administrative Location Addendum commences on the Effective Date (as set forth above) and, unless terminated earlier as hereinafter provided, shall expire on ___________ (the "Initial Term"). Upon Franchisee's request, Franchisor may, at its sole discretion, agree to extend the Initial Term for one or more additional, consecutive periods of time (each a "Renewal Term", the Initial Term and each Renewal Term hereinafter jointly referred to as "Term") by executing an amendment to this Administrative Location Addendum documenting such Renewal Term(s), as applicable.
- 5.2 Notwithstanding anything set forth in Section 5.3 below, each party may terminate this Administrative Location Addendum for convenience during the Term by providing at least thirty (30) days written notice to the other party.
- 5.3 Franchisee agrees and acknowledges, that the operation of the Administration Location is contingent upon Franchisee's continued compliance in operating its franchised Business in accordance with the terms and conditions of the FA. If the FA is terminated or expires,
for any reason, this Administrative Location Addendum shall automatically terminate.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the Administrative Location Addendum allows a franchisee to operate an additional location within their protected area for the specific purpose of housing administrative and support personnel and handling related administrative tasks. This addendum supplements the existing Franchise Agreement (FA), which grants the franchisee the right to operate an Engel & Volkers Residential Real Estate Brokerage at an Approved Location. The Administrative Location Addendum does not replace the requirement to maintain an Approved Location as per the Franchise Agreement. Engel & Volkers' consent is required for any relocation of the Administrative Location, and operating such a location does not guarantee the approval of additional locations or the extension of the addendum's term.
The addendum specifies that Engel & Volkers can grant new franchise locations near the Administrative Location, provided they are outside the franchisee's protected area. The franchisee must keep the existence and provisions of the Administrative Location Addendum confidential, disclosing it only to advisors when necessary or as part of an approved assignment. Breaching this confidentiality can render the addendum void at Engel & Volkers' discretion. The Administrative Location Addendum is an amendment to the Franchise Agreement, with all other terms and conditions of the FA remaining in effect unless specifically amended by the addendum.
Engel & Volkers requires the franchisee to pay a one-time, non-refundable fee of $2,500 upon execution of the Administrative Location Addendum. The Administrative Location cannot display Engel & Volkers' trademarks or otherwise identify itself as an Engel & Volkers location. The franchisee is responsible for all costs associated with constructing, remodeling, and equipping the Administrative Location, ensuring it is well-maintained. The premises must be used solely for administrative and support functions, with no public traffic, on-site client interactions, or real estate transactions permitted. The address of the Administrative Location cannot be used on business cards, websites, or promotional materials by the franchisee or their Sales Advisors. The operation of the Administrative Location must comply with Engel & Volkers' System Documentation and the terms of the Franchise Agreement, as amended by the addendum.