What section of the Engel & Volkers Franchise Agreement outlines the franchisee's obligations regarding adequate reserves and working capital?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligations | Section in agreement | Disclosure document item |
|---|---|---|
| z. Adequate Reserves and | FA §6.15 | Item 15 |
| Working Capital |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 40–42)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations. Specifically, it indicates that the obligation to maintain adequate reserves and working capital is detailed in Section 6.15 of the Franchise Agreement. This section is further referenced under Item 15 of the disclosure document.
This means that as a prospective Engel & Volkers franchisee, you should carefully review Section 6.15 of the Franchise Agreement to fully understand your responsibilities regarding financial stability. Maintaining adequate reserves and working capital is crucial for the successful operation of the franchise and to meet ongoing financial obligations.
Understanding these requirements is essential for budgeting and financial planning. Prospective franchisees should discuss this section with a financial advisor to ensure they have a clear understanding of the financial commitments involved in operating an Engel & Volkers franchise. It is also advisable to seek clarification from Engel & Volkers regarding any specific requirements or expectations related to reserves and working capital.