Are Engel & Volkers and its affiliates restricted from engaging in any business activity outside the Protected Area?

According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers and its affiliates are not generally restricted from engaging in any business activity outside a franchisee's protected area. Specifically, Engel & Volkers reserves all rights not specifically granted to the franchisee, including the right to operate or franchise a real estate brokerage under the Engel & Volkers system or trademarks at any location outside the Protected Area. This means that Engel & Volkers or its affiliates can operate similar businesses near a franchisee's location, as long as it is outside the defined Protected Area.

Engel & Volkers also reserves the right to engage in any business activity and deploy any business concept whatsoever, using the trademarks in connection with such other concepts and business activities, both inside and outside the Protected Area (except as restricted by Section 2.3 of the Franchise Agreement). The franchise agreement does not grant the franchisee any right to participate in or benefit from such other concepts or business activities, regardless of whether they are conducted under the trademarks or not. This clause reinforces that Engel & Volkers retains broad rights to pursue various business ventures without necessarily including the franchisee.

Furthermore, Engel & Volkers reserves the right to purchase, merge, acquire, be acquired by, or affiliate with any existing competitive or non-competitive franchise network, chain, or any other business, regardless of the location of that chain's or business' facilities. It can then operate, franchise, or franchise those businesses under the Engel & Volkers trademarks or any other marks, even if these businesses are located within the franchisee's Protected Area. This highlights the potential for Engel & Volkers to expand its business through acquisitions or mergers, which could introduce competition even within a franchisee's Protected Area, although this is subject to other terms in the agreement.