What was the date the State of Washington commenced its investigation into Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In Re: Franchise No Poaching Provisions, State of Washington v. Engel & Völkers Americas,Inc., State of Washington, King County Superior Court, No. 19-2-25518-8, commenced on August 16, 2019. In August of 2019 the Washington State Office of the Attorney General initiated an investigation into "nopoach" provisions used by Engel & Völkers in its franchise agreements for its residential brokerage program. The investigation was part of a broader investigation into the use of no-poach provisions by franchisors in general. The matter was resolved by Engel & Völkers and the Washington State Office of the Attorney General entering into an Assurance of Discontinuance, approved by the King County Superior Court on September 30, 2019. Pursuant to the Assurance of Discontinuance Engel & Völkers agreed to not enforce no-poaching provisions in its existing agreements in the U.S. and attempt to amend its agreements with franchisees in Washington to delete such provisions.
Source: Item 3 — LITIGATION (FDD pages 17–21)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the State of Washington commenced its investigation into Engel & Volkers on August 16, 2019. The Washington State Office of the Attorney General initiated this investigation due to concerns about "no-poach" provisions present in Engel & Volkers' franchise agreements for its residential brokerage program. These provisions restrict the ability of franchisees to hire employees from other franchise locations within the same system. The investigation was part of a broader inquiry into the use of no-poach provisions by franchisors in general.
The investigation concluded with Engel & Volkers entering into an Assurance of Discontinuance with the Washington State Office of the Attorney General, which was approved by the King County Superior Court on September 30, 2019. As part of this agreement, Engel & Volkers committed to not enforcing no-poaching provisions in its existing agreements across the U.S. and to actively seek amendments to its agreements with franchisees in Washington to remove these provisions.
For a prospective Engel & Volkers franchisee, this litigation indicates the brand's willingness to resolve legal issues by agreeing to change certain business practices. It also highlights the importance of understanding the legal and regulatory landscape concerning franchise agreements, particularly regarding provisions that may limit franchisee autonomy in hiring and operations. Franchisees should be aware of any potential restrictions and ensure compliance with all applicable laws and regulations.