Under what circumstances might Engel & Volkers adapt or modify its system?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
y Franchisor and, in any event, upon termination or expiration of this Agreement for any reason whatsoever. Franchisee shall not at any time copy, duplicate, record or otherwise reproduce or transcribe any of the System Documentation or any of the forms supplied by Franchisor hereunder without Franchisor's prior written consent. If the System Documentation is supplied electronically, Franchisee may print one copy for its personal use in the operation of the Residential Real Estate Brokerage.
12. Ongoing Development of the ENGEL & VÖLKERS System
12.1 Modifications:
12.1.1 The parties hereby mutually agree that it may be necessary to adapt the ENGEL & VÖLKERS System, either on a temporary or a permanent basis, due to changing market conditions. In its sole business judgment, the Franchisor may take any steps it deems necessary to adapt and modify the ENGEL & VÖLKERS System, the Integrated Product Suite, the System Documentation and the Trademarks, and the required equipment, technology, signs, trade dress and other business characteristics Franchisee will be required to adhere to (subject to the limitations set forth in this Agreement), to such events or changes in market conditions and other developments occurring at any given time; provided, however, that the cost to Franchisee for adaptations and modifications shall not be unreasonable. Franchisee acknowledges that some aspects of the ENGEL & VÖLKERS System, such as modifications relating to computer systems and technology, may need frequent upgrades and changes. Franchisor will advise Franchisee in writing or by electronic transmission of any amendments, additions to and/or deletions from or substitutions for the System Documentation. Franchisee hereby undertakes to make corresponding amendments to its versions of the System Documentation at its own expense as soon as practicable on receipt of notification of these amendments, and to comply with the requirements of the System Documentation as it may be revised from time to time. Franchisee acknowledges that Franchisor has developed, and may from time to time develop, programs and designations that are only available to franchisees who meet certain criteria and that Franchisor may make adaptations and modifications to the ENGEL & VÖLKERS System related to such programs and designations. Franchisee further acknowledges and agrees that entering into this Agreement does not require Franchisor to make adaptations and modifications to the ENGEL & VÖLKERS System related to such programs and designations available to Franchisee, or entitle Franchisee to participate in such programs or obtain such designations. Franchisee will not have the right to require Franchisor to disclose any such program, designation, or variation or to
grant the same or a similar variation to Franchisee. Furthermore, Franchisor may adapt the ENGEL & VÖLKERS System to the peculiarities of a particular market area or its circumstances, business potential, population, existing business practices, any other condition which Franchisor considers important to the successful operation of Franchisee's business, or due to other events or other nonarbitrary distinctions, and whether or not they arise to the level of a force majeure event and whether or not they are foreseeable may Franchisee understands and agrees that adaptations and modifications to the ENGEL & VÖLKERS System may obligate Franchisee to invest additional capital or incur higher operating costs.
- 12.1.2 Franchisor will inform Franchisee of any exclusive cooperation arrangements entered into by Franchisor with services companies, e.g., providing for financial services, such as banks, insurance companies or other vendors offering services tailored for use by real estate professionals. In such cases, Franchisee shall then cooperate exclusively with these services companies in accordance with the terms and conditions of the cooperation agreement between Franchisor and those companies, except in cases where Franchisee has legitimate commercial or financial reasons for refusing such cooperation.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers may find it necessary to adapt its system due to changing market conditions. Engel & Volkers has the authority to take necessary steps to adapt and modify the Engel & Volkers System, the Integrated Product Suite, the System Documentation and the Trademarks, and the required equipment, technology, signs, trade dress and other business characteristics Franchisee will be required to adhere to, subject to the limitations set forth in the Franchise Agreement. Engel & Volkers will advise franchisees in writing or by electronic transmission of any amendments, additions to and/or deletions from or substitutions for the System Documentation.
Engel & Volkers may also adapt the Engel & Volkers System to the peculiarities of a particular market area or its circumstances, business potential, population, existing business practices, any other condition which Engel & Volkers considers important to the successful operation of Franchisee's business, or due to other events or other nonarbitrary distinctions, and whether or not they arise to the level of a force majeure event and whether or not they are foreseeable. Franchisees should understand that these adaptations and modifications may require additional capital investment or higher operating costs. Franchisees are expected to make corresponding amendments to their versions of the System Documentation at their own expense as soon as they receive notification of these amendments, and to comply with the requirements of the System Documentation as it may be revised from time to time.
Furthermore, Engel & Volkers has the right to add or delete any or all tools, web-based and other technology and software that make up the Integrated Product Suite or any part thereof, and to amend and modify such tools, technology and software as well as the terms for their usage. Engel & Volkers may further establish reasonable new standards for the implementation of technology in the Engel & Volkers System, including changes and adaptation to the Integrated Product Suite. Franchisees are obligated to adopt any changes or modifications to the Integrated Product Suite and abide by those reasonable modified or new standards established by Engel & Volkers at their sole cost.