Under what circumstances can Engel & Volkers terminate the Administrative Location Addendum, the Franchise Agreement, and any other agreement with the franchisee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7. Confidentiality**.** Franchisee covenants and agrees to keep the existence of this Administrative Location Addendum and its provisions secret and confidential and not to disclose same to anyone else, except to Franchisee's advisers, and only if necessary for the efficient and proper operation of the franchised business, or except as part of an assignment that is approved by Franchisor.
In the event Franchisee breaches this provision, this Administrative Location Addendum, or any part thereof, shall be at the election of the Franchisor, be null and void and such benefits accruing to Franchisee shall thereupon terminate.
- 20.2 Automatic Termination Without Notice.
Franchisee will be in default under this Agreement, and all rights granted in this Agreement will immediately and automatically terminate and revert to Franchisor without notice to Franchisee, if: Franchisee, the franchised Business or any affiliate or Guarantor thereof is adjudicated as bankrupt or insolvent; all or a substantial portion of the assets of the franchised Business are assigned to or for the benefit of any creditor; a petition in bankruptcy is filed by or against Franchisee, the franchised Business and/or any affiliate or Guarantor thereof and is not immediately contested and thereafter dismissed or vacated within sixty (60) days from filing; Franchisee, the franchised Business and any affiliate or Guarantor thereof cause, permit or acquiesce in an order for relief under the U.S.
21.1.2 immediately cease using the ENGEL & VÖLKERS System, including the Trademarks, and Confidential Information;
21.1.3 immediately remove the name ENGEL & VÖLKERS®, ENGEL & VOELKERS, E&V® or EV from its business name, if one of those names appears in its business name, and take all necessary action to cancel any assumed name or equivalent registration and any registered user agreement which pertains to the franchised Business and contains or pertains to the name "ENGEL & VÖLKERS" or any other Trademark of Franchisor, or any variant, within fifteen (15) days following termination or expiration of this Agreement.
Franchisee must furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
If Franchisee fails to do so within thirty (30) days following the date of termination or expiration, Franchisor may, in Franchisee's name, on Franchisee's behalf and at Franchisee's expense, sign all documents necessary to cause discontinuance of Franchisee's use of the name "ENGEL & VÖLKERS" or any other Trademark or any variant with respect to the franchised Business.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Administrative Location Addendum can be terminated under specific circumstances. If a franchisee breaches the confidentiality provision of the addendum by disclosing its existence or provisions (except to their advisors when necessary or as part of an approved assignment), Engel & Volkers has the option to render the addendum null and void, terminating any benefits to the franchisee.
Additionally, the Franchise Agreement itself can be terminated automatically without notice if the franchisee, the franchised business, or any guarantor is adjudicated bankrupt or insolvent. Termination also occurs if a substantial portion of the business's assets are assigned for the benefit of creditors, or if a bankruptcy petition is filed by or against the franchisee and not dismissed within 60 days. These automatic termination clauses protect Engel & Volkers from financial instability or legal issues affecting the franchisee's ability to operate the business.
Upon termination or expiration of the Franchise Agreement, the franchisee must immediately cease using the Engel & Volkers system, including trademarks and confidential information. This includes removing the Engel & Volkers name from the business, ceasing use of advertising materials, and transferring all phone numbers, email accounts, internet domains, and social media accounts related to the business to Engel & Volkers. Failure to comply allows Engel & Volkers to take necessary actions at the franchisee's expense, including signing documents on the franchisee's behalf to discontinue use of the Engel & Volkers name. These post-termination obligations ensure a clean break and protect Engel & Volkers' brand and system.