What is the 'Term' as it is defined in the Engel & Volkers Administrative Location Addendum?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may not relocate the Administrative Location without Franchisors prior | written consent. Operating this Administrative Location does not guarantee Franchisor's | consent to grant another limited purpose location or extend the Term of this | Administrative Location (as set forth hereinafter), which remains at Franchisor's sole | discretion.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
Based on the 2025 Engel & Volkers Franchise Disclosure Document, the excerpt provided does not define the 'Term' within the Administrative Location Addendum. The document does mention that operating an Administrative Location does not guarantee an extension of the Term, which remains at Engel & Volkers's discretion.
Because the definition of 'Term' is not provided in the excerpt, it is important for a prospective franchisee to ask Engel & Volkers about the specific length and conditions of the term for the Administrative Location Addendum. Understanding the term's duration and any renewal options is crucial for planning and investment decisions related to the administrative location.
It would also be prudent to inquire about the factors Engel & Volkers considers when deciding whether to extend the term of an Administrative Location. Knowing these criteria can help a franchisee align their operations and performance to increase the likelihood of a term extension, ensuring long-term stability for their administrative support functions.