What disclaimer language may Engel & Volkers require in a franchisee's offering materials?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall place a conspicuous notice on or near the front entrance of its Residential Real Estate Brokerage that clearly states: "[NAME OF FRANCHISEE] IS AN INDEPENDENTLY OWNED AND OPERATED FRANCHISED BUSINESS" or any modification of this statement as Franchisor may require in the System Documentation ("the Disclaimer"). Franchisee must include the Disclaimer in all dealings with customers, contractors, suppliers, public officials, members of the public, and on all signage, business cards, stationery, promotional and advertising materials, online communications, real estate documents and all other materials it uses.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, franchisees must place a conspicuous notice on or near the front entrance of their Residential Real Estate Brokerage. This notice must clearly state: "[NAME OF FRANCHISEE] IS AN INDEPENDENTLY OWNED AND OPERATED FRANCHISED BUSINESS." Engel & Volkers retains the right to require modifications to this statement in the System Documentation.
Engel & Volkers requires that the franchisee include this disclaimer in all dealings with customers, contractors, suppliers, public officials, and members of the public. It must also appear on all signage, business cards, stationery, promotional and advertising materials, online communications, and real estate documents. This ensures that all parties are aware that the franchisee is an independent entity operating under the Engel & Volkers brand.
This requirement is typical in franchising, as it helps to clarify the relationship between the franchisor and franchisee, protecting both parties from potential liability issues. By mandating the use of this disclaimer, Engel & Volkers aims to maintain a consistent brand image while ensuring that customers understand they are dealing with an independently owned and operated business. Prospective franchisees should be aware of this requirement and ensure they comply with the specific wording and placement guidelines provided by Engel & Volkers.