Must an Engel & Volkers franchisee comply with the specifications contained in the System Documentation regarding the design of online and printed communications?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
a sites, blogs, electronic communication and other online sites and applications on which the Trademarks, service marks, trade names, copyrights or any similar marks are used. Franchisee agrees to remove any usage or content that Franchisor requires, including without limitation, content that Franchisor deems to be scandalous, immoral or detrimental to Franchisor's image. Franchisee further agrees and acknowledges that Franchisor may prohibit use of the Trademarks and any confusingly similar marks on any site or all sites and applications.
11. System Documentation
- 11.1 Compliance with System Documentation: Franchisor has summarized and documented details of the ENGEL & VÖLKERS System and its application in the System Documentation. In order to preserve the good reputation of the ENGEL & VÖLKERS System and ensure maintenance of uniform standards, Franchisee hereby agrees to operate its Residential Real Estate Brokerage in accordance with the mandatory instructions contained in the System Documentation, as it may be amended or modified from time to time. Notwithstanding the foregoing, nothing in the System Documentation shall give Franchisor the right to use technology or tools that the Franchisee is required to use pursuant to the System Documentation to direct or assert control over Franchisee's staff members' or Sales Advisors working conditions, except to the extent the control relates to Franchisor's legitimate interest in protecting the quality of the ENGEL & VÖLKERS System (brand) or the products or services offered at the Residential Real Estate Brokerage.
- 11.2 Validity of System Documentation: Franchisor will provide Franchisee with access to the System Documentation. The System Documentation may be available through a secure Internet link from time to time. Franchisor may communicate to Franchisee mandatory and suggested standards, methods, procedures and specifications applicable to the ENGEL & VÖLKERS System and information relative to other obligations of Franchisee under this Agreement and to the operation of the ENGEL & VÖLKERS System. Such communications may be made through the System Documentation or written or electronic media. Franchisee shall follow the instructions contained in the most recent versions of the System Documentation. In case of any doubt, the master version of the System Documentation kept at the Franchisor's head office shall take precedence, control and
prevail. The System Documentation may be modified by Franchisor in its sole business judgment at any time.
11.3 Confidentiality, Copyright, etc.: Franchisee hereby agrees to treat the System Documentation as strictly confidential and not to allow any unauthorized persons to read or use them or to have access to them. The System Documentation and the copyright on them remain the sole and exclusive property of Franchisor. Franchisee may only use the System Documentation during the Term and may only use them for purposes of operating its business in compliance with the ENGEL & VÖLKERS System. The System Documentation at all times shall remain the exclusive property of Franchisor, and Franchisee shall return all copies of the System Documentation, in whatever format, which Franchisee may have made or obtained to Franchisor promptly upon request by Franchisor and, in any event, upon termination or expiration of this Agreement for any reason whatsoever.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must adhere to the specifications outlined in the System Documentation for both online and printed communications. The System Documentation details the Engel & Volkers System, and franchisees agree to operate their real estate brokerage according to the mandatory instructions within this documentation, which may be updated periodically. Franchisees must also comply with the requirements for using trademarks in electronic commerce, including their website.
Engel & Volkers franchisees are required to use only the design formats provided by the franchisor for advertising and displays. These formats are subject to ongoing improvements to standardize the Engel & Volkers system. Franchisees must obtain prior written consent from Engel & Volkers for any advertising or sales promotion campaign design that significantly deviates from previously approved designs or those outlined in the System Documentation. This ensures that all advertising and promotional materials align with the brand's standards.
Engel & Volkers maintains the right to set requirements and restrictions on advertising, promotion, and other activities that could negatively impact other franchisees or target their protected areas. Franchisees must comply with these requirements and restrictions. Additionally, franchisees must adhere to Engel & Volkers' online and social media policies, which may change over time. Individual franchisee websites and mobile applications are prohibited, and online promotional strategies must comply with Engel & Volkers' online policy. Franchisees can maintain their own social media accounts, but these are subject to Engel & Volkers' social media guidelines and the franchisor's right to withdraw consent at any time. Engel & Volkers may review and monitor all online content on social media sites and other online platforms where the trademarks are used, and franchisees must remove any content deemed scandalous, immoral, or detrimental to the brand's image.