Does Engel & Volkers require each principal to read the Franchise Disclosure Document?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 24.6 This Agreement represents a valid, binding obligation of Franchisee and each Principal.
Each Principal has fully read this Agreement and Franchisor's Franchise Disclosure Document, and each Principal represents that he/she is capable of complying with all of the terms of this Agreement and the Principal's Guarantee and Assumption of Obligations.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, each principal associated with a franchise agreement is required to read both the Franchise Agreement and the Franchise Disclosure Document (FDD). This requirement is part of the broader agreement that the Franchisee and each Principal must adhere to. Furthermore, each Principal must acknowledge their capability to comply with all terms outlined in the Franchise Agreement and the Principal's Guarantee and Assumption of Obligations. This ensures that all parties involved are fully informed and capable of meeting their responsibilities.
This requirement is significant because it legally binds each principal to the terms and conditions of the franchise agreement. By acknowledging that they have read and understood the documents, principals are confirming their commitment to upholding the standards and obligations set forth by Engel & Volkers. This includes financial obligations, operational standards, and adherence to the brand's guidelines.
For a prospective Engel & Volkers franchisee, this means that all individuals considered a 'Principal' must carefully review the Franchise Agreement and FDD. This may include owners, partners, or key managers within the franchise entity. It is essential to fully understand the implications of these documents before signing, as each Principal will be held accountable for compliance. Franchisees should seek legal counsel to review these documents and ensure they fully understand their obligations and rights under the agreement.