What section of the Engel & Volkers Franchise Agreement outlines the franchisee's obligations related to 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, Section 6.15 of the Franchise Agreement details the franchisee's obligations regarding adequate reserves and working capital. This information is also referenced in Item 15 of the disclosure document.
This means that Engel & Volkers franchisees are contractually obligated to maintain sufficient financial resources to operate their franchise. The specific requirements for these reserves and working capital would be detailed in Section 6.15 of the Franchise Agreement, which is included as Exhibit C to the FDD.
Prospective franchisees should carefully review Section 6.15 of the Franchise Agreement (Exhibit C) and Item 15 of the FDD to fully understand the level of reserves and working capital Engel & Volkers requires. Understanding these requirements is crucial for ensuring the franchisee has the financial stability to meet ongoing operational expenses and unexpected financial challenges during the term of the franchise agreement.