For Engel & Volkers, what representation does each principal make regarding their ability to comply with the Franchise Agreement?

According to Engel & Volkers's 2025 Franchise Disclosure Document, each principal associated with the franchisee must acknowledge their capability to adhere to the terms outlined in the Franchise Agreement and the Principal's Guarantee and Assumption of Obligations. This signifies that each principal is affirming they have thoroughly reviewed the agreement and the Franchise Disclosure Document, and that they possess the understanding and capacity to meet all obligations.

This representation is a critical component of the agreement, as it ensures that the individuals responsible for the franchisee's operations are fully aware of their duties and responsibilities. By signing the agreement, each principal confirms their commitment to upholding the standards and requirements set forth by Engel & Volkers. This commitment extends to both the financial and operational aspects of the franchise, as well as compliance with all applicable laws and regulations.

For a prospective Engel & Volkers franchisee, this requirement means that all individuals considered principals within their business structure must be prepared to personally guarantee their ability to comply with the Franchise Agreement. This may involve demonstrating sufficient financial resources, relevant experience, and a clear understanding of the obligations involved. It is essential for potential franchisees to carefully consider who will be designated as a principal and ensure that these individuals are fully informed and prepared to meet these requirements. This also highlights the importance of thoroughly reviewing the Franchise Disclosure Document and seeking legal counsel to fully understand the implications of the agreement before signing.