What is the criteria Engel & Volkers uses to determine requirements and restrictions on advertising, promotion and other activities?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall be entitled to set requirements and restrictions on advertising, promotion and other activities that it determines, in its sole discretion, negatively impacts the business
of one or more other franchisees or that is specifically targeted or directed towards the protected areas of one or more other franchisees. Such requirements and restrictions are intended to balance the ability of franchisees to freely compete in the marketplace and the right of a franchisee to operate within its protected area without undue interference from other franchisees, and Franchisor shall have full discretion in its determination of such balance. Franchisee agrees to comply with all such requirements and restrictions.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers has the authority to set requirements and restrictions on a franchisee's advertising, promotion, and other activities. Engel & Volkers will determine if these activities negatively impact other franchisees or target their protected areas.
This policy is designed to balance the ability of franchisees to compete freely in the market with the right of each franchisee to operate within their protected area without interference. Engel & Volkers retains full discretion in determining this balance. Franchisees must comply with all requirements and restrictions set by Engel & Volkers.
In practice, this means that an Engel & Volkers franchisee needs to be aware that their advertising and promotional activities could be subject to restrictions if Engel & Volkers believes they are harming other franchisees or encroaching on their territories. It also highlights the importance of understanding the defined protected area and adhering to the franchisor's guidelines to avoid potential conflicts.