Under the Engel & Volkers Administrative Location Addendum, is the right to operate a Limited Purpose Administrative Location exclusive or non-exclusive?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS | LIMITED PURPOSE ADMINSTRATIVE LOCATION ADDENDUM ("Administrative Location Addendum") is made and entered into this (the "Effective Date") by and between ENGEL & VÖLKERS AMERICAS, INC., a Delaware corporation ("Franchisor"), and, a ("Franchisee"). |
|---|---|
| as set forth in the FA. | WHEREAS, Franchisor and Franchisee entered into a Franchise Agreement, dated (the |
| "FA") providing Franchisee with the right to use the ENGEL & VÖLKERS System to operate an Engel & | |
| Völkers Residential Real Estate Brokerage and conduct the franchised Business at an Approved Location | |
| WHEREAS, Franchisee has requested to operate an additional location within Franchisee's | |
| Protected Area for the limited purpose of housing Franchisee's administrative and support personnel and | |
| related administrative tasks for Franchisee's franchised Business. | |
| FA. | NOW THEREFORE, in consideration of the provisions in the FA, the promises in this |
| Administrative Location Addendum, and other good and valuable consideration, the delivery, receipt, and | |
| sufficiency of which are acknowledged, the parties mutually agree as set forth below. All capitalized terms | |
| not defined in this Administrative Location Addendum shall have the respective meanings set forth in the | |
| 1. | Grant of Limited Purpose Administrative Location: |
| 1.1 | Franchisor hereby grants Franchisee the non-exclusive, non-transferrable right to |
| establish and operate a Limited Purpose Administrative Location at, and only at the | |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the right to operate a Limited Purpose Administrative Location is non-exclusive. Specifically, the Administrative Location Addendum grants the franchisee a non-exclusive right to establish and operate this type of location within their protected area.
This means that Engel & Volkers retains the right to grant other franchises, including additional administrative locations, within the same protected area as the franchisee's existing territory. This is a standard practice in franchising, as franchisors typically want to maximize market penetration and brand presence.
For a prospective franchisee, this non-exclusive right implies that while they can operate an administrative location, they should be aware that Engel & Volkers could allow other franchisees or even open company-owned administrative locations nearby, potentially impacting their business. However, Engel & Volkers will not grant a new franchisee location near the Administrative Location, as long as such new franchisee location is outside of Franchisee's Protected Area.