What licensing requirements apply to the Engel & Volkers franchisee and their personnel involved in real estate activities?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ial Real Estate Brokerage location and exterior brokerage designs (renderings) that are compliant with the ENGEL & VÖLKERS' System and System Documentation and that failure to do so will be a material breach of this Agreement. Franchisee hereby agrees not to encourage or permit any activities in its Residential Real Estate Brokerage which are incompatible with this Agreement, the ENGEL & VÖLKERS System or with the type of properties covered by this Agreement. Any exceptions to this rule shall require the prior written consent of Franchisor.
- 6.7 Laws and Regulations: Franchisee hereby agrees to observe and obey all federal, state and local laws, official regulations and decrees applicable in the state where its Approved Location is located, as well as anywhere else where Franchisee conducts business pursuant to this Agreement. This obligation includes licensing as a real estate broker, and any licenses and permits which it may require for the performance of its business. During the Term, Franchisee must provide Franchisor annually (no later than January 31 of each year) with a current copy of its real estate broker license. In particular, Franchisee agrees to abstain from any actions which Franchisor has expressly agreed not to perform in agreements with third parties or from which it is obliged to abstain under law. Franchisee understands and agrees that it shall be liable for any damage or loss incurred by Franchisor as a result of its failure to observe the foregoing undertakings.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must comply with all federal, state, and local laws and regulations applicable to their location, including licensing as a real estate broker. The franchisee must also secure any necessary licenses and permits required for their business operations. Annually, no later than January 31, franchisees must provide Engel & Volkers with a current copy of their real estate broker license.
Engel & Volkers requires that franchisees employ qualified personnel with the appropriate background, experience, and credentials that align with the best practices and standards of the real estate brokerage industry. The franchisee, or at least one officer, partner, or manager if the franchisee is an entity, must be licensed as a real estate broker. Furthermore, every employee, contractor, or Sales Advisor involved in real estate activities for the franchisee must hold a real estate broker, salesperson, or other appropriate license as required by applicable laws and regulations.
These employees, contractors, and Sales Advisors must also complete an appropriate training course conducted by Engel & Volkers and pass any related tests. The franchisee is responsible for ensuring that their real estate brokerage remains open during local normal business hours for residential real estate brokerages. Ultimately, the franchisee is accountable for ensuring that all employees adhere to the obligations outlined in the franchise agreement.