Can an Engel & Volkers franchisee conduct business under other trademarks besides the residential trademarks when providing Permitted Commercial Services?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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' 2025 Franchise Disclosure Document, franchisees are explicitly restricted from using trademarks other than the residential trademarks when offering Permitted Commercial Services. Permitted Commercial Services are defined as commercial real estate brokerage services offered ancillary to residential services, where the franchisee does not present themselves primarily as a commercial real estate provider, and where commercial listings do not exceed 5% of all listings in a calendar year. This means that while an Engel & Volkers franchisee can engage in some commercial real estate activities, they must do so under the Engel & Volkers residential brand.
This restriction ensures that the Engel & Volkers brand remains consistent and primarily associated with residential real estate. It prevents franchisees from diluting the brand by operating under multiple trademarks, which could confuse customers and weaken the brand's identity. The 5% limit on commercial listings further reinforces this focus on residential properties, ensuring that commercial services remain a secondary offering.
For a prospective Engel & Volkers franchisee, this means that their business operations must primarily focus on residential real estate. While they can explore commercial opportunities to a limited extent, they cannot build a separate brand or use other trademarks to market those services. This limitation is something to consider when evaluating the potential revenue streams and market opportunities available under the Engel & Volkers franchise.