Can an Engel & Volkers Franchisee sublicense any rights in the Integrated Product Suite?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.6.3 Franchisee may not sublicense, assign or transfer, directly or indirectly or by operation of law or otherwise, any rights in the Integrated Product Suite or in the Licensed Materials;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from sublicensing any rights associated with the Integrated Product Suite or the Licensed Materials. The Integrated Product Suite is a proprietary technology platform used for recording property listings, managing client relationships, online marketing support, brokerage services, and integrating franchisees into the Engel & Volkers technology network. The Licensed Materials include associated instructions and documentation provided to the franchisee. Engel & Volkers retains ownership and all intellectual property rights to the Integrated Product Suite, its branding, and customization specifications.
This restriction means that Engel & Volkers franchisees cannot grant any third party, including other businesses or individuals, the right to use the Integrated Product Suite or Licensed Materials. The franchise agreement only allows the franchisee and their trained staff members or Sales Advisors to access and use these resources for operating the residential real estate brokerage at the approved location. This condition ensures that Engel & Volkers maintains control over its technology and brand standards, preventing unauthorized use or distribution of its proprietary tools and resources.
The Engel & Volkers franchise agreement specifies that franchisees must ensure their licensed users comply with all obligations outlined in the agreement. Franchisees are responsible for preventing anyone from modifying, copying, adapting, reverse engineering, decompiling, disassembling, or otherwise misusing the Integrated Product Suite or Licensed Materials. This requirement underscores the importance of data security and intellectual property protection within the Engel & Volkers franchise system.
Prospective Engel & Volkers franchisees should understand that the inability to sublicense the Integrated Product Suite is a standard practice in franchising, designed to protect the franchisor's intellectual property and maintain consistency across the franchise network. Franchisees need to rely on the resources provided by Engel & Volkers and ensure their staff and Sales Advisors adhere to the usage terms to avoid any breach of contract.