Can Engel & Volkers franchisees advertise inside of another franchisee's protected area?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ve the right to operate an Engel & Völkers Residential Real Estate Brokerage at a specific location as specified in Appendix 1 of your Franchise Agreement ("Approved Location"). You will have exclusivity with regard to your Engel & Völkers Residential Real Estate Brokerage in a specific area called the "Protected Area", which will be an area defined by US postal zip codes. By "Exclusivity" we mean that we will not open or grant to anyone else the right to open another Engel & Völkers Residential Real Estate Brokerage in your Protected Area during the term of your Franchise Agreement. "Exclusivity" does not mean that we, our affiliates, or other franchisees are prevented from soliciting clients, marketing our residential real estate brokerage services, or concluding real estate transactions in your Protected Area.
You will operate only from one Approved Location and you must receive our written consent before relocating. You may not open an Engel & Völkers Residential Real Estate Brokerage outside your Protected Area.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are permitted to advertise within another franchisee's protected area. The FDD specifies that while a franchisee receives exclusivity within their protected area, defined by zip codes, this exclusivity does not prevent other franchisees from marketing their services or soliciting clients within that area. This means that Engel & Volkers franchisees may face competition from other franchisees within their own territories through advertising and marketing efforts.
This aspect of the Engel & Volkers franchise agreement is important for prospective franchisees to consider. While they are granted a protected area, the ability of other franchisees to advertise there could impact their market share and revenue potential. Franchisees should be prepared to compete with other Engel & Volkers locations through marketing and customer service to maintain a strong presence in their territory. This is fairly common in the franchise industry, as many franchise systems allow some overlap in marketing efforts to maximize brand exposure.
Furthermore, Engel & Volkers itself, its affiliates, and other franchisees are not restricted from soliciting clients, marketing services, or concluding real estate transactions within a franchisee's protected area. This highlights that the exclusivity granted is limited to the physical establishment of another Engel & Volkers Residential Real Estate Brokerage. Franchisees need to be aware that the franchisor and other franchisees can still actively pursue business within their protected area through various means, requiring them to proactively defend their market share.