What does Engel & Volkers require regarding the franchisee and its principals compliance with United States government economic sanctions?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 26.11.5 Franchisee and its Principals understand the requirements of, and will abide by, all United States government economic sanctions requirements throughout the Term.
Franchisee and its Principals represent and warrant that neither Franchisee nor any of its direct or indirect Principals, shareholders, owners, directors, managers, affiliates, employees or agents, nor any funding source Franchisee utilizes, is or will be identified on the list of the U.S.
Treasury's Office of Foreign Assets Control (OFAC) or is or will be a person subject to trade restrictions under United States law, including (without limitation) the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the Trading with the Enemy Act, 50 U.S.C.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees and their principals must adhere to all United States government economic sanctions throughout the term of their agreement. This means that Engel & Volkers franchisees must understand and comply with these regulations.
Engel & Volkers also requires that neither the franchisee nor any of its direct or indirect principals, shareholders, owners, directors, managers, affiliates, employees, or agents, nor any funding source the franchisee utilizes, be identified on the list of the U.S. Treasury's Office of Foreign Assets Control (OFAC) or be a person subject to trade restrictions under United States law. This includes, but is not limited to, the International Emergency Economic Powers Act and the Trading with the Enemy Act.
In practical terms, this means a prospective Engel & Volkers franchisee must conduct thorough due diligence to ensure that they, their business partners, and their funding sources are not in violation of any U.S. economic sanctions or trade restrictions. Failure to comply with these regulations could result in severe legal and financial penalties for both the franchisee and Engel & Volkers.