What is the purpose of the Limited Purpose Administrative Location Addendum for an Engel & Volkers franchise?
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.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the Limited Purpose Administrative Location Addendum allows a franchisee to operate an additional location within their protected area. This additional location is specifically for housing administrative and support personnel and handling related administrative tasks for the franchised business. The addendum clarifies that this administrative location does not replace the franchisee's obligation to maintain an approved location as stated in the Franchise Agreement (FA).
The addendum grants the franchisee the non-exclusive and non-transferable right to operate this administrative location, but only at a specified location within their protected area. Engel & Volkers's consent is required for any relocation of the administrative office. The document emphasizes that operating an administrative location does not guarantee the franchisee the right to operate additional administrative locations or extend the term of the addendum; these decisions remain at Engel & Volkers's discretion.
Engel & Volkers also retains the right to grant new franchises near the administrative location, provided these new locations are outside the franchisee's protected area. The franchisee must keep the existence and terms of the addendum confidential, disclosing it only to advisors when necessary or as part of an approved assignment. A franchisee will pay Engel & Volkers a one-time, non-refundable fee of $2,500 for the Administrative Location. The administrative location cannot bear any of Engel & Volkers's trademarks or be identified as an Engel & Volkers location. Franchisees are responsible for all costs associated with setting up and maintaining the administrative location, ensuring it is clean and well-maintained.