What is Engel & Volkers' right regarding increasing limits and expanding the scope of permissible business activities for franchisees?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to increase the limits and expand the scope of permissible business activities upon advance written notice. We have the right to add additional authorized services and equipment that you are required to offer. There are no limits on our right to do so although we have no present plans to do so.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 62–63)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers retains the right to modify the scope of business activities that franchisees are allowed to undertake. Specifically, Engel & Volkers reserves the right to increase limits and expand the scope of permissible business activities for franchisees.
This means that Engel & Volkers can, with advance written notice, allow franchisees to engage in a broader range of activities than initially specified in the Franchise Agreement. Engel & Volkers also has the right to add additional authorized services and equipment that franchisees are required to offer.
While Engel & Volkers has no current plans to implement such changes, this clause provides them with the flexibility to adapt the franchise system to changing market conditions or strategic priorities. For a prospective franchisee, this implies that the scope of their business could evolve over time, potentially requiring them to invest in new services, equipment, or training. It is important to note that Engel & Volkers is required to provide advance written notice of any such changes.