What training programs must an Engel & Volkers assignee complete before the assignment?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor does not elect to exercise its right of first refusal (as provided in Section 22.5 below), then Franchisor will not unreasonably withhold consent to Franchisee's sale, transfer or assignment of any interest in Franchisee (if Franchisee is a business entity), the
franchise conveyed by this Agreement and Franchisee's right to use the ENGEL & VÖLKERS System, or any interest in any of these, to a third party. Franchisee agrees that it will not be unreasonable for Franchisor to impose, among other requirements, the following conditions to granting consent to Franchisee's proposed sale, assignment or transfer of any of the foregoing:
- 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.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, if a franchisee wishes to assign their equity or economic interest in the 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' satisfaction that they possess the skills, qualifications, financial condition, background, 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.
While the FDD outlines the general qualifications and requirements for a proposed assignee to be approved as a franchisee, it does not explicitly state that the assignee must complete specific training programs before the assignment. However, it is implied that the assignee needs to demonstrate the ability to fulfill the obligations under the agreement, which may include completing required training programs.
To gain a comprehensive understanding of the training requirements for an assignee, a prospective franchisee should directly inquire with Engel & Volkers about the specific training programs the assignee would need to complete. This inquiry should clarify whether the assignee can complete the training after the assignment or if it is a prerequisite for approval.