What advertising restrictions are placed on Engel & Volkers franchisees regarding their Residential Real Estate Brokerage services?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the restrictions set out herein, nothing shall prevent Franchisee from advertising its Residential Real Estate Brokerage services in the U.S. (for property listings in the U.S.) for which Franchisee is registered (and/or, if applicable, licensed) under applicable state law and, to the extent granted by Franchisee's rights under and in compliance with the terms of this Agreement, in any national or international publications or via the internet, or similar venue or tool or otherwise advertise outside of its Protected Area.
Before providing advertising or otherwise soliciting Real Estate Brokerage services for any property listings (buyer or seller side) outside of the U.S., Franchisee must obtain Franchisor's written consent in each instance, which Franchisor may grant or withhold based on its business judgment.
Likewise, Franchisor and other franchisees are permitted to advertise inside Franchisee's Protected Area.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees face specific advertising restrictions, particularly concerning geographic scope and brand representation. Franchisees are generally permitted to advertise their residential real estate brokerage services within the U.S., provided they are registered or licensed in the relevant state. This includes advertising in national or international publications, online, or through similar venues, even outside their exclusive Protected Area.
However, Engel & Volkers franchisees must obtain written consent from the franchisor before advertising or soliciting real estate brokerage services for property listings outside the U.S. The franchisor has the discretion to grant or withhold this consent based on their business judgment. Failure to obtain this consent can be a breach of the franchise agreement, potentially leading to termination. This stipulation ensures that Engel & Volkers maintains control over its brand image and service quality in international markets.
Additionally, the FDD specifies that while franchisees have a Protected Area where no other Engel & Volkers Residential Real Estate Brokerage will be placed, this exclusivity does not prevent the franchisor, its affiliates, or other franchisees from soliciting clients, marketing their residential real estate brokerage services, or concluding real estate transactions within the franchisee's Protected Area. This means that franchisees may face competition from within the Engel & Volkers network, even in their designated territory. Franchisees must also operate their brokerage under the Engel & Volkers trade name and adhere to the franchisor's standards in their advertising and overall operation, ensuring consistency and protecting the brand's reputation.