What section outlines the requirements for finding and securing an Approved Location for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ings, client relationship management and online marketing support and for brokerage services and for the integration of franchisees into the ENGEL & VÖLKERS technology network and such other purposes as may be determined by Franchisor from time to time (the "Integrated Product Suite");
- Provision of ongoing business administration and technical and marketing support;
- Initial and continuing training courses; and
- Organization of exchanges of information and experience among franchisees.
- 1.4 The Franchisee: Franchisee wishes to be franchised the right to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage and franchised business under this Agreement (the franchised "Business") at and only at the approved location specified in Appendix 1 (hereinafter called the "Approved Location"). If, as of the date of this Agreement, the Approved Location has not yet been determined, then it shall thereafter be determined in accordance with Section 3.1 and, upon determination, inserted into Appendix 1. Franchisor is prepared to grant Franchisee, at its request, a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location and to use commercially reasonable efforts to support Franchisee.
- 1.5 Independent Investigation: Franchisee has independently investigated the business risks involved and such other matters as Franchisee deems important, including current and potential market conditions and competitive factors and risks, has read Franchisor's Franchise Disclosure Document, and has not relied on any representations not set forth in this Agreement. Aware of the relevant facts, Franchisee desires to enter into this Agreement to obtain a franchise to use the ENGEL & VÖLKERS System to operate a residential real estate brokerage at the Approved Location. Franchisee agrees that it will bear the financial risk involved in operation of the real estate brokerage.
**2.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the requirements for finding and securing an Approved Location are detailed in Section 3.1. Section 1.4 also references the Approved Location, stating that the franchisee will operate at the Approved Location specified in Appendix 1. If the Approved Location is not determined by the agreement date, it will be determined according to Section 3.1 and then added to Appendix 1. Section 20.3.1 indicates that failure to secure Franchisor approval of the Approved Location in accordance with Section 3.1 can result in a failure to meet obligations.
Section 3.1 of the Engel & Volkers franchise agreement outlines the process for finding and securing an approved location. This is a critical step for franchisees as it defines where they are authorized to operate their residential real estate brokerage. The agreement emphasizes that the franchisee's business must be conducted solely at this Approved Location, and any changes or additional locations require prior written consent from Engel & Volkers.
Engel & Volkers also stipulates in Section 3.2 that the premises must be used solely for the operation of the Residential Real Estate Brokerage and related promotional activities, and must be kept open during normal business hours. Franchisees are responsible for the costs associated with constructing, remodeling, and equipping their Residential Real Estate Brokerage according to the plans and standards in the System Documentation, as detailed in Section 3.3. The design and maintenance of the brokerage must adhere to Engel & Volkers' standards, and any modifications require prior written consent from the franchisor.