Is an Engel & Volkers franchisee allowed to injure the goodwill associated with the Engel & Volkers system?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, Franchisee is not permitted to use any text, copy, photography, images, sound, and/or video to promote its services and/or listings unless Franchisee has proper authorization or a license to do so on any websites, mobile applications, other electronic media, public relations initiatives, social media, photography, any other advertising, marketing or any other business measures. Franchisee agrees to refrain from any business or advertising practice which might injure Franchisor's business or the goodwill associated with the ENGEL & VÖLKERS System or Trademarks.
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 the 2025 Engel & Volkers Franchise Disclosure Document, franchisees are explicitly prohibited from engaging in any business or advertising practices that could harm the goodwill associated with the Engel & Volkers system or its trademarks. This restriction is in place to protect the brand's reputation and ensure consistent quality across all franchise locations.
Engel & Volkers also sets 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. These requirements aim to balance the ability of franchisees to compete freely in the marketplace with the right of each franchisee to operate within its protected area without undue interference from others. Engel & Volkers retains full discretion in determining this balance, and franchisees must comply with all such requirements and restrictions.
Furthermore, certain actions by a franchisee that could harm the goodwill of the Engel & Volkers system can lead to termination of the franchise agreement. These actions include committing an act of moral turpitude or engaging in activities that could have a materially adverse effect on the Engel & Volkers system, trademarks, or associated goodwill. Conviction of a felony, fraud, or any crime involving moral turpitude also falls under this category, especially if Engel & Volkers reasonably believes it relates to the franchisee's duties or operation of the franchised business.