As an Engel & Volkers franchisee, am I allowed to lease properties?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the residential franchise we are granting to you, you may use the Engel & Völkers name for the listing, offering, selling, exchanging, purchasing, managing, leasing or renting solely of the following types of compatible real estate for which a real estate broker's license is required under local law:
You may provide real estate brokerage services only for residential properties consisting of a house or building (including an apartment within a multi-family building) or undeveloped land, including leaseholds, vacation and resort residential units, cooperatives, condominiums, and any other form of real estate for which a residential real estate brokerage license is required under applicable law.
Although the Franchise Agreement grants a franchise for a Residential Real Estate Brokerage, you may also provide real estate brokerage services for commercial properties under residential Trademarks, provided: (i) the commercial real estate brokerage services are offered as a service ancillary to the provision of real estate brokerage services for residential properties, (ii) you do not hold yourself out as providing commercial real estate brokerage services as your principal business or as being a stand-alone provider solely of commercial services, and (iii) your aggregate listings on a unit basis of commercial properties does not exceed 5% of all its listings in any calendar year during the term of your Franchise Agreement ("Permitted Commercial Services"). For purposes of clarity, the definition of Permitted Commercial Services does not provide you with a right to conduct business under any other Trademarks, other than the residential Trademarks.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 62–63)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, as a franchisee, you are permitted to engage in leasing or renting activities. However, this is specifically limited to compatible real estate for which a real estate broker's license is required under local law. This means you can use the Engel & Volkers name for listing, offering, selling, exchanging, purchasing, managing, leasing, or renting certain types of properties.
The types of properties you can provide real estate brokerage services for include residential properties such as a house or building (including apartments), undeveloped land, leaseholds, vacation and resort residential units, cooperatives, and condominiums. Essentially, you can deal with any form of real estate that requires a residential real estate brokerage license under the applicable laws.
While the franchise is primarily for residential real estate, you can also provide services for commercial properties under residential trademarks, provided these services are ancillary to your residential business. This means you cannot present yourself as mainly offering commercial real estate services, and your commercial property listings must not exceed 5% of your total listings in any calendar year. This condition ensures that Engel & Volkers franchisees focus primarily on residential properties while allowing some involvement in commercial real estate as a secondary activity.