Do Engel & Volkers or its affiliates compete with franchisees in their Protected Area through alternative channels of distribution for products and services?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we, nor our affiliates, compete with you in your Protected Area through alternative channels of distribution for products and services such as through internet or catalog, telemarketing or direct sales.
Neither we, nor any of our affiliates currently operate or franchise, or have plans to operate or franchise under a different trademark any business that sells services similar to those you will offer.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, neither Engel & Volkers nor its affiliates compete with franchisees in their Protected Area through alternative channels of distribution, such as internet, catalog, telemarketing, or direct sales. Engel & Volkers and its affiliates also do not currently operate or franchise, nor do they have plans to operate or franchise under a different trademark, any business that sells services similar to those offered by franchisees.
However, the FDD clarifies that 'Exclusivity' within a franchisee's Protected Area does not prevent Engel & Volkers, its affiliates, or other franchisees from soliciting clients, marketing residential real estate brokerage services, or concluding real estate transactions within that Protected Area. This means that while Engel & Volkers will not directly compete through alternative distribution channels, other entities within the Engel & Volkers network are still permitted to operate and market within a franchisee's territory.
Engel & Volkers also retains the right to use other channels of distribution, such as the Internet, to make sales within a franchisee's Protected Area under their principal Trademarks or different Trademarks for commercial property transactions. This is a notable exception, as Engel & Volkers can engage in commercial property transactions within a franchisee's residential real estate territory. Engel & Volkers does not operate Residential Real Estate Brokerages.
Prospective franchisees should be aware that while they are granted a Protected Area for Engel & Volkers Residential Real Estate Brokerages, this exclusivity has limitations. Other franchisees and Engel & Volkers itself can still solicit clients and conduct business within the Protected Area, particularly concerning commercial property transactions. Understanding these nuances is crucial for assessing the potential market and competition within the assigned territory.