What are the requirements for an Engel & Volkers franchisee to renew their franchise agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise | §19.1 | 10 years |
| term | ||
| b. Renewal or extension of | §§19.2, 19.3 | 1 period of 10 years |
| the term | ||
| c. Requirements for franchisee to renew or extend | §§19.2, 19.3 | Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the franchise agreement has an initial term of 10 years, with an option for one renewal period of 10 years. To renew the franchise agreement, an Engel & Volkers franchisee must provide written notice to the company at least 6 months before the current term expires.
Additionally, the franchisee must be in full compliance with all the provisions outlined in the existing Franchise Agreement, as well as any other agreements they have with Engel & Volkers. This indicates that maintaining good standing throughout the initial term is crucial for eligibility to renew.
Furthermore, the franchisee will be required to sign the then-current form of the Franchise Agreement, which may contain materially different terms and conditions compared to the original agreement. They must also sign a general release and pay a renewal fee. This highlights the possibility of increased costs or altered obligations upon renewal, and the importance of carefully reviewing the new agreement. Note that in North Dakota, franchisees are not required to sign a general release upon renewal.