What is the purpose of the Engel & Volkers Prior Production Reports?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.1.2 Franchisee shall submit Franchisee's prior Gross Revenues for the preceding period of up to three (3) years ("Prior Production Report") and transactional data as required by Franchisor and in a format reasonably acceptable to Franchisor. Prior Production Reports are intended to be used for reporting and benchmarking purposes, but may also be used for other, similar purposes by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the Prior Production Reports that franchisees must submit serve a dual purpose. Franchisees must submit their prior gross revenues for up to three years preceding the current period. These reports are intended for both reporting and benchmarking purposes, allowing Engel & Volkers to assess performance and compare it against other franchisees. The FDD also states that Engel & Volkers may use these reports for other similar purposes.
For a prospective Engel & Volkers franchisee, this means that the franchisor will collect and analyze past revenue data to evaluate the franchisee's performance and compare it to others in the system. This benchmarking can help franchisees identify areas for improvement and understand how they measure up against their peers. It also allows Engel & Volkers to monitor the overall health and performance of its franchise network.
It is important for franchisees to maintain accurate records of their gross revenues and transactional data to ensure the Prior Production Reports are reliable. Franchisees should clarify with Engel & Volkers exactly how the data from these reports will be used and what specific metrics will be benchmarked. Understanding the full scope of how this data is utilized can help franchisees better leverage the reports for their own business planning and improvement strategies.