What skills and qualifications must a proposed Engel & Volkers assignee demonstrate to the franchisor's satisfaction?
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.
- 22.3.2 That, upon Franchisor's request, the proposed assignee (or, if the proposed assignee is a business entity, each and every Principal owner or guarantor of the proposed assignee) presents himself, herself or itself for a personal interview at Franchisor's corporate office, or any other location (or by virtual / videoconference call) that Franchisor designates, at a date and time Franchisor reasonably requests, without expense to Franchisor.
Franchisor may determine to meet with the proposed assignee at his, her or its principal place of business or residence and, if Franchisor does so, Franchisee will reimburse Franchisor for all travel, lodging, meal and personal expenses related to such meeting.
22.3.3 That the proposed assignee has the organizational, managerial and financial structure, resources, and capital required to conduct and operate the franchised Business: (i) in accordance with the System Documentation and brand standards as ENGEL & VÖLKERS and Franchisor indicate from time to time; and (ii) otherwise properly, in Franchisor's business judgment.
22.3.4 That the proposed assignee complies with Franchisor's ownership requirements relative to the control of the proposed assignee and the franchised Business.
22.3.5 That the proposed assignee (and, if the proposed assignee is a business entity, each and every owner or guarantor of the proposed assignee) complies with Franchisor' restrictions relative to involvement in a competitive business.
22.3.6 That the proposed assignee; his, her or its proposed business managers; and, such other post-transaction staff members of the franchised Business attend and successfully complete Franchisor's then-required training programs before the assignment, and any other training that Franchisor reasonably requires, at the assignee's expense (which will include Franchisor's then-current training fee and the cost of the trainees' transportation, lodging, food and other living expenses).
Each individual undergoing such training must first execute the Confidentiality/Non-Competition Agreement attached hereto.
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 assign their franchise to a third party, the proposed assignee must meet certain requirements to gain approval from Engel & Volkers. The proposed assignee needs to apply for acceptance as a franchisee.
The assignee must demonstrate that they (and each principal owner and guarantor, if the assignee is a business entity) possess the necessary skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and the ability to fulfill the obligations under the franchise agreement or any successor agreement. Engel & Volkers will assess these factors to determine if the assignee is suitable to take over the franchise.
Engel & Volkers also requires the proposed assignee (or each principal owner/guarantor if a business entity) to attend a personal interview at Engel & Volkers' corporate office or another designated location. The assignee must also have the organizational, managerial, and financial structure, resources, and capital required to operate the franchised business according to Engel & Volkers' system documentation and brand standards. Furthermore, the proposed assignee must comply with Engel & Volkers' ownership requirements and restrictions related to involvement in competitive businesses. The proposed assignee, their business managers, and other relevant staff must also attend and successfully complete Engel & Volkers' required training programs before the assignment, at their own expense, and sign a Confidentiality/Non-Competition Agreement.
The franchisee is responsible for covering the costs of any investigation Engel & Volkers conducts to evaluate the proposed assignee. Engel & Volkers retains significant discretion in determining whether a proposed assignee meets its standards for operating an Engel & Volkers franchise.