What is the Engel & Volkers franchisee prohibited from doing with the franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
e marks, tradenames, logos, or other marks will no longer be encompassed in the definition of "Trademarks" under this Agreement with respect to Franchisee's rights thereto.
- 4.2 Extent of Franchisor's Rights: Franchisor has the non-exclusive right and license to use the Trademark ENGEL & VÖLKERS® and other Trademarks in the United States solely for the purpose of operating its own Residential Real Estate Brokerage and granting third parties the right to use the Trademarks to operate a Residential Real Estate Brokerage.
- 4.3 Franchisee's Rights: Franchisee is hereby granted a non-exclusive franchise for the Term to use the Trademarks listed in Section 4.1 solely for the purpose of operating its Residential Real Estate Brokerage under this Agreement. Franchisee may use the Trademarks in connection with the publication of its activity under this Agreement in its correspondence (including its business documents, letterheads, listing presentations, business cards, etc.) and also in advertisements, subject to compliance with the standards stipulated by Franchisor and in the System Documentation. Franchisee shall use the trademark ENGEL & VÖLKERS® and other Trademarks solely in accordance with the provisions of this Agreement and System Documentation and shall not use or apply for the registration of any mark or names confusingly similar to any Trademark, or use or apply for the registration of any mark or name that incorporates in whole or in part any Trademark, or, use or cause such marks or names to be registered that would prejudice the rights attaching to any Trademark in any other way whatsoever. Franchisee shall also not use the Trademarks in the metaverse, and Franchisor reserves, maintains, and controls all right with respect to the use of the System and the Trademarks in the metaverse.
- 4.4 Individual Personnel Are Not Independently Licensed to Use Trademarks: Franchisee acknowledges and agrees that no one employed or contracted by Franchisee's Residential Real Estate Brokerage in any capacity, including any licensed real estate agent ("Sales Advisor") or person otherwise affiliated with Franchisee's Residential Real Estate Brokerage has any direct or independent right or license to use the Trademarks, but rather that their use of the Trademarks comes under and is subject to and contingent upon Franchisee's license to use such marks as set forth in this Agreement.
- 4.5 Assumed Name Filings/Disclaimer: Franchisee may not use the names ENGEL & VÖLKERS**®, ENGEL & VOLKERS, ENGEL & VOELKERS, E&V®**, ENGEL AND VÖLKERS, ENGEL AND VOELKERS, ENGEL VOELKERS, EV, EV REAL ESTATE, E&V REAL ESTATE or any other confusingly similar name as part of its company's legal name without the prior express written permission of Franchisor. Franchisee's company
will operate under the name set forth in the summary attached as Appendix 1.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").
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees face several prohibitions regarding the operation of their franchise. Engel & Volkers franchisees are restricted from using trademarks in ways not explicitly authorized, including registering confusingly similar marks or using the trademarks in the metaverse. Engel & Volkers retains all rights to the use of its system and trademarks in the metaverse. Franchisees also cannot use names similar to Engel & Volkers's registered names without prior written consent.
Engel & Volkers franchisees must secure franchisor approval for their location and begin operations by the specified opening date. Abandoning the brokerage, using it for prohibited purposes, or failing to operate it for a week is not allowed. Franchisees must also maintain accurate financial records and provide them to Engel & Volkers. They are prohibited from concealing revenues, falsifying records, or submitting false reports.
Additionally, Engel & Volkers franchisees must obtain written consent before advertising or soliciting real estate brokerage services for properties outside the U.S. Failure to do so can result in termination of the franchise agreement. Franchisees are also expected to adhere to confidentiality and non-competition agreements. Breaching these agreements can lead to serious repercussions, including termination. These restrictions are typical in franchising to protect the brand and maintain standards across the system.