What representation does an Engel & Volkers franchisee make by submitting the reports?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Moreover, Franchisee affirms and attests that any training provided by Franchisor for Franchisee's employees and contractors is geared to impart to those employees and contractors, with ultimate authority, the various procedures, protocols, systems and operations of a franchised business and in no fashion reflects any employment relationship between Franchisor and such employees and contractors.
Finally, should it ever be asserted that Franchisor is the employer, joint employer or co-employer of Franchisee or any of Franchisee's employees or contractors in any private or government investigation, action, proceeding, arbitration or other setting, Franchisee irrevocably agrees to assist Franchisor in defending said allegation, including (if necessary) appearing at any venue requested by Franchisor to testify on Franchisor's behalf (and, as may be necessary, submitting itself to depositions, other appearances and/or preparing affidavits dismissive of any allegation that Franchisor is the employer, joint employer or co-employer of Franchisee or any of Franchisee's employees or contractors).
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, by submitting reports, a franchisee affirms that any training provided by Engel & Volkers for the franchisee's employees and contractors is designed to impart the procedures, protocols, systems, and operations of a franchised business. This training does not reflect any employment relationship between Engel & Volkers and the franchisee's employees or contractors. This is a crucial distinction, clarifying that Engel & Volkers is not considered the employer of the franchisee's staff.
Furthermore, the franchisee agrees to assist Engel & Volkers in defending against any allegation that Engel & Volkers is the employer, joint employer, or co-employer of the franchisee or the franchisee's staff in any investigation, action, or proceeding. This includes appearing at venues requested by Engel & Volkers to testify on their behalf and preparing affidavits to dismiss such allegations. This obligation remains even after the termination or expiration of the franchise agreement.
This requirement protects Engel & Volkers from potential liabilities related to the franchisee's employees and contractors. It ensures that the franchisee acknowledges and actively supports the franchisor's position as a separate entity. For a prospective franchisee, this means understanding the importance of maintaining a clear distinction between their employees and the franchisor, and being prepared to legally defend that distinction if necessary. This is a common provision in franchise agreements to protect the franchisor from vicarious liability.