What skills and qualifications must a proposed Engel & Volkers assignee demonstrate?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.3.1 That the proposed assignee (meaning individual or business entity which, after the proposed assignment, will be the franchisee under this Agreement or under any successor/renewal agreement) applies to Franchisor for acceptance as a franchisee and demonstrates to Franchisor's satisfaction that the proposed assignee (and, if it is a business entity, each and every Principal owner and guarantor of the proposed assignee) possesses the skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating and ability to assume the duties and obligations under this Agreement or any successor agreement.
Franchisee must pay the costs of any investigation required to be conducted by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, if a franchisee wishes to sell their franchise to a third party, the proposed assignee must apply to Engel & Volkers for acceptance as a franchisee. The assignee must demonstrate to Engel & Volkers's satisfaction that they possess the necessary skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and ability to assume the duties and obligations under the Franchise Agreement or any successor agreement. If the proposed assignee is a business entity, each principal owner and guarantor of the proposed assignee must also meet these requirements.
In practical terms, this means that Engel & Volkers retains significant control over who can become a franchisee within their system. They want to ensure that any new franchisee meets their standards for success and will uphold the brand's reputation. The extensive list of criteria, ranging from financial stability to moral character, indicates a thorough vetting process.
For a prospective franchisee looking to sell their Engel & Volkers franchise in the future, it's important to understand that finding a buyer is only the first step. The buyer must also be approved by Engel & Volkers, and the approval process could be lengthy and complex. The franchisee must also pay the costs of any investigation required by Engel & Volkers.