Within what timeframe must Engel & Volkers consent, withhold consent, or accept 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.
Franchisee must pay the costs of any investigation required to be conducted by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
Based on the 2025 Engel & Volkers Franchise Disclosure Document, if a franchisee wishes to sell their interest to a third party, Engel & Volkers will not unreasonably withhold consent to the sale, transfer, or assignment of any interest in the franchise. However, the FDD does not specify a particular timeframe in which Engel & Volkers must provide consent, withhold consent, or accept the assignment.
Engel & Volkers does outline several conditions that must be met before they grant consent to a proposed sale, assignment, or transfer. These conditions include the proposed assignee applying for acceptance as a franchisee and demonstrating that they possess the skills, qualifications, financial condition, background, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and ability to assume the duties and obligations under the agreement. The franchisee is also responsible for covering the costs of any investigation conducted by Engel & Volkers to assess the proposed assignee.
Because the FDD does not state a specific timeframe for Engel & Volkers to respond to a request for assignment, it is important for a prospective franchisee to discuss this point directly with the franchisor. Understanding the expected turnaround time for the approval process is crucial for managing the sale of the franchise and ensuring a smooth transition for all parties involved. A franchisee should also seek clarity on the criteria Engel & Volkers uses to evaluate potential assignees to better prepare for the assignment process.