Was the investigation into Engel & Volkers' franchise agreements in Washington part of a broader investigation?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the investigation initiated by the Washington State Office of the Attorney General into Engel & Volkers' franchise agreements was indeed part of a broader investigation. The investigation, which commenced in August 2019, specifically targeted the use of "no-poach" provisions within Engel & Volkers' franchise agreements for its residential brokerage program.

The FDD clarifies that this investigation was not isolated to Engel & Volkers alone but was part of a larger inquiry into the use of no-poach provisions by franchisors in general. This suggests that the Washington State Office of the Attorney General was scrutinizing multiple franchise systems for similar practices, indicating a widespread concern over potential anti-competitive behavior within the franchising industry.

The matter was resolved when Engel & Volkers and the Washington State Office of the Attorney General entered into an Assurance of Discontinuance, which was approved by the King County Superior Court on September 30, 2019. As a result of this agreement, Engel & Volkers committed to not enforcing no-poaching provisions in its existing agreements across the U.S. and to actively seek amendments to its agreements with franchisees in Washington to remove these provisions. This outcome highlights the importance of franchisees understanding the legal landscape and the potential for regulatory scrutiny of franchise agreement terms.