Does Engel & Volkers reserve the right to require samples from proposed suppliers for evaluation and testing?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee proposes to contract for or purchase products or services from any supplier that Franchisor has not previously designated or approved for such products or services, Franchisee must notify Franchisor in writing and submit to Franchisor all information, specifications and samples that Franchisor requests. Any products or services from Suppliers must be in accordance with the then-current ENGEL & VÖLKERS System standards. Such approval of any products or services will be made by Franchisor based on samples that have been provided to it. Franchisor reserves the right to require that samples from the proposed Supplier be delivered to Franchisor or its designated testing facility for evaluation and testing. Franchisor will have sole discretion as to whether or not to approve any supplier.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers retains the right to request samples from potential suppliers for assessment and testing. If a franchisee suggests using a supplier not already approved by Engel & Volkers, the franchisee must provide all requested information, specifications, and samples.
Engel & Volkers will assess the products or services based on the provided samples to ensure they meet the brand's system standards. The samples may be sent to Engel & Volkers or a designated testing facility for evaluation. The approval of any supplier remains at Engel & Volkers's sole discretion.
This requirement ensures that all products and services used by Engel & Volkers franchisees meet the franchisor's standards, maintaining consistency and quality across the brand. Franchisees need to factor in the time and potential costs associated with submitting samples and awaiting approval when sourcing suppliers. This also means Engel & Volkers franchisees do not have complete autonomy over choosing their vendors and must work within the franchisor's guidelines.