Under what conditions can an Engel & Volkers franchisee relocate the Administrative Location?
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 | |
| following | |
| location: | |
| (the | |
| "Administrative | |
| Location") within Franchisee's Protected Area subject to the terms of this Administrative | |
| Location Addendum and the FA. | |
| 1.2 | Franchisee acknowledges and agrees that the Administrative Location is not deemed to |
| be nor does it constitute, replace or otherwise amend Franchisee's obligation to establish | |
| and operate an Approved Location as set forth in the FA. | |
| 1.3 | 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)
According to Engel & Volkers's 2025 Franchise Disclosure Document, a franchisee may not relocate the Administrative Location without the prior written consent of Engel & Volkers. This requirement is outlined in the Limited Purpose Administrative Location Addendum to the Franchise Agreement.
This stipulation gives Engel & Volkers significant control over where franchisees operate their administrative functions. It ensures that any relocation aligns with the brand's strategic interests and operational standards. A franchisee needs to formally request permission and receive approval before moving the administrative location.
For a prospective Engel & Volkers franchisee, this means that flexibility in choosing or changing the administrative location is limited. The franchisee should discuss potential relocation scenarios with Engel & Volkers during the due diligence phase to understand the criteria and process for obtaining consent. This could impact long-term planning and operational logistics.
It is important to note that Engel & Volkers's consent to operate an Administrative Location does not guarantee consent to grant another limited purpose location or extend the term of the Administrative Location, which remains at Engel & Volkers's sole discretion.