Is an Engel & Volkers franchisee required to participate in a local or regional advertising cooperative?

According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are not required to participate in a local or regional advertising cooperative. The FDD explicitly states that Engel & Volkers does not have the power to mandate the formation, alteration, dissolution, or merging of cooperatives. Furthermore, franchisees are not obligated to join any local or regional advertising cooperative, and there is no advertising council. This provides franchisees with autonomy in their local advertising strategies. However, Engel & Volkers does have a National Marketing and Technology Fund, to which franchisees may be required to contribute monthly, as detailed in Item 6 of the FDD. These payments are based on a percentage of the franchisee's gross revenues.

While participation in local or regional advertising cooperatives is not mandatory, Engel & Volkers franchisees are responsible for their own local advertising efforts. However, all advertising materials and displays must be approved by Engel & Volkers, and franchisees must adhere to the guidelines outlined in the System Documentation. Franchisees need to obtain prior written consent for any advertising or sales promotion campaign, unless the design format aligns with those previously practiced, recommended, or outlined in the System Documentation.

Engel & Volkers retains control over national advertising and marketing initiatives through the National Marketing and Technology Fund. The franchisor determines the cost, media, content, format, timing, concentration, and exposure of advertising campaigns and technology programs. A portion of this fund may be used for joint advertising campaigns with related companies, but it will not be used to solicit the sale of master franchises or franchises. This structure ensures brand consistency and allows Engel & Volkers to manage the overall marketing strategy while franchisees handle local promotions within the established guidelines.