What is Engel & Volkers relying on when awarding the franchise to the franchisee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
hereinafter called the "Approved Location"). If, as of the date of this Agreement, the Approved Location has not yet been determined, then it shall thereafter be determined in accordance with Section 3.1 and, upon determination, inserted into Appendix 1. Franchisor is prepared to grant Franchisee, at its request, a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location and to use commercially reasonable efforts to support Franchisee.
- 1.5 Independent Investigation: Franchisee has independently investigated the business risks involved and such other matters as Franchisee deems important, including current and potential market conditions and competitive factors and risks, has read Franchisor's Franchise Disclosure Document, and has not relied on any representations not set forth in this Agreement. Aware of the relevant facts, Franchisee desires to enter into this Agreement to obtain a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers relies on the franchisee's independent investigation and understanding of the business risks involved. Engel & Volkers requires that the franchisee acknowledges they have read the Franchise Disclosure Document and have not relied on any representations not explicitly stated in the franchise agreement. This indicates that Engel & Volkers emphasizes the importance of the franchisee conducting their own due diligence and not solely depending on the franchisor's claims.
Engel & Volkers also requires the franchisee to acknowledge that they are aware of the relevant facts and are willing to bear the financial risk involved in operating the real estate brokerage. This highlights that Engel & Volkers wants to ensure the franchisee is fully informed and prepared for the potential challenges and financial obligations of running the business. By acknowledging these factors, the franchisee demonstrates their understanding and acceptance of the risks associated with the franchise.
Furthermore, the agreement explicitly states that the franchisee has dealt only with the franchisor in the award of the Engel & Volkers franchise and not with the Engel & Völkers Group or the Parent company or any of their affiliates. The franchisee also acknowledges that neither the Engel & Völkers Group nor the Parent company have any obligations to the franchisee under the agreement. This clarifies the relationship between the franchisee, the franchisor, and related entities, ensuring that the franchisee understands who is responsible for fulfilling the obligations of the franchise agreement. This protects Engel & Volkers from potential claims against entities not directly party to the agreement.