What is the Engel & Volkers agreement's definition of 'Partners'?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby agrees not to provide residential or commercial real estate brokerage services, or any component thereof, competing with the ENGEL & VÖLKERS System during the Term (as defined hereinafter), either directly or indirectly, in an employed or a self-employed capacity, for its own account or for the account of a third party, as a proprietor, partner, investor, shareholder, member, director, manager, officer, employee, principal, agent, advisor, consultant, lessor, sublessor or any similar capacity, either from an Approved Location or any other geographic location whatsoever. Moreover, any spouse, domestic partner or immediate family member of any of Franchisee's Principal(s) may not provide residential or commercial real estate brokerage services, or any component thereof, competing with the ENGEL & VÖLKERS System during the Term of this Agreement (as defined hereinafter), either directly or indirectly, in an employed or a self-employed capacity, for its own account or for the account of a third party, as a proprietor, partner, investor, shareholder, member, director, manager, officer, employee, principal, agent, advisor, consultant, lessor, sublessor or any similar capacity, unless such services are outside a seventy five (75) mile radius of any Approved Location of Franchisee.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the term 'partner' is referenced within the context of non-competition during the agreement term. Specifically, the agreement states that the franchisee is prohibited from providing real estate brokerage services that compete with the Engel & Volkers system, either directly or indirectly, in any capacity, including as a partner.
This restriction extends not only to the franchisee but also to their spouse, domestic partner, or immediate family members. These individuals are also barred from engaging in competing real estate brokerage services within a 75-mile radius of the franchisee's approved location. The agreement specifies that this non-compete applies whether the individual is acting as a proprietor, partner, investor, shareholder, member, director, manager, officer, employee, principal, agent, advisor, consultant, lessor, sublessor, or in any similar capacity.
This clause aims to protect Engel & Volkers' market position and prevent franchisees or their close relatives from leveraging the brand's resources and knowledge to operate competing businesses. It is a standard practice in franchising to include non-compete clauses to safeguard the franchisor's investment in its brand and system. Franchisees should carefully consider the implications of these restrictions, especially concerning family members who may have an interest in real estate.