What is the impact of the standardization of the Engel & Volkers System on advertising and displays?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Verlag reserves the right to make reasonable changes to the advertising prices from time to time.
- 10.3 Advertising by Franchisee: Franchisee shall be responsible for Franchisee's own local advertising and must comply with the specifications contained in the System Documentation, in particular in
- the buyer and seller services,
- the design of advertisements,
- the design of all signage, including all yard signs and other listing signage
- the design of online and printed communications, and
- the design of window displays in a Residential Real Estate Brokerage.
Franchisee shall utilize only those design formats for advertising and displays which have been provided by Franchisor which are subject to ongoing improvement in the interests of Franchisee and the standardization of the ENGEL & VÖLKERS System. In the interests of standardizing the ENGEL & VÖLKERS System, Franchisee shall obtain the prior written consent of Franchisor to each and every advertising and/or sales promotion campaign design format unless it does not essentially depart from those previously practiced or recommended by Franchisor and/or does not deviate from those outlined in the System Documentation. In order to ensure uniform application of the ENGEL & VÖLKERS System, Franchisee must obtain Franchisor's prior written consent to every planned advertising and promotional design format which differs significantly from the type of activity practiced or recommended by Franchisor and/or from the instructions contained in the System Documentation.
Additionally, Franchisee is not permitted to use any text, copy, photography, images, sound, and/or video to promote its services and/or listings unless Franchisee has proper authorization or a license to do so on any websites, mobile applications, other electronic media, public relations initiatives, social media, photography, any other advertising, marketing or any other business measures. Franchisee agrees to refrain from any business or advertising practice which might injure Franchisor's business or the goodwill associated with the ENGEL & VÖLKERS System or Trademarks.
Franchisor shall be entitled to set requirements and restrictions on advertising, promotion and other activities that it determines, in its sole discretion, negatively impacts the business
of one or more other franchisees or that is specifically targeted or directed towards the protected areas of one or more other franchisees. Such requirements and restrictions are intended to balance the ability of franchisees to freely compete in the marketplace and the right of a franchisee to operate within its protected area without undue interference from other franchisees, and Franchisor shall have full discretion in its determination of such balance. Franchisee agrees to comply with all such requirements and restrictions.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must adhere to the design formats provided by Engel & Volkers for advertising and displays. These formats are subject to ongoing improvement to benefit the franchisee and maintain standardization within the Engel & Volkers system. Franchisees must obtain prior written consent from Engel & Volkers for any advertising or sales promotion campaign design that significantly deviates from previously approved or recommended formats, or from guidelines outlined in the System Documentation.
This standardization ensures that all advertising and displays align with the Engel & Volkers brand, maintaining a consistent image across all locations. Franchisees are also prohibited from using unauthorized text, copy, photography, images, sound, or video to promote their services or listings without proper authorization or licensing. This includes websites, mobile applications, electronic media, public relations, social media, and other advertising or marketing efforts.
The goal is to prevent any business or advertising practices that could harm Engel & Volkers' business or the goodwill associated with its system and trademarks. Engel & Volkers can set requirements and restrictions on advertising and promotional activities that negatively impact other franchisees or target their protected areas. These measures aim to balance franchisees' ability to compete freely while protecting each franchisee's right to operate within their designated area without undue interference.
Franchisees are responsible for their local advertising but must comply with the specifications in the System Documentation, particularly regarding buyer and seller services, advertisement design, signage, online and printed communications, and window displays. This ensures that local advertising efforts remain consistent with the overall brand standards and contribute to the uniform application of the Engel & Volkers system.