Does Engel & Volkers limit who a franchisee may hire as a broker manager, besides the licensing requirement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.2 Personnel: Franchisee hereby agrees to employ only qualified personnel with background, experience and credentials customary under best practices and standards in the real estate brokerage industry. Franchisee and, if an entity, at least one of its officers, partners and/or managers, must be licensed as a real estate broker, and every employee, contractor, or Sales Advisor who is involved in real estate activities for Franchisee shall have a real estate broker, salesperson or other appropriate license, if and as required by applicable law, rules or regulations. These employees, contractors, and Sales Advisors must have attended an appropriate training course conducted by Franchisor and have passed related tests. Franchisee is responsible for ensuring that its real estate brokerage is open during local normal business hours for residential real estate brokerages. Franchisee shall be responsible for ensuring that its obligations under this Agreement are observed by its employees,
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 61–62)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must employ only qualified personnel with the background, experience, and credentials customary under best practices and standards in the real estate brokerage industry. If the franchisee is an entity, at least one of its officers, partners, or managers must be licensed as a real estate broker. Every employee, contractor, or Sales Advisor involved in real estate activities for the franchisee must have a real estate broker, salesperson, or other appropriate license, as required by applicable law, rules, or regulations.
Engel & Volkers requires these employees, contractors, and Sales Advisors to attend an appropriate training course conducted by Engel & Volkers and pass related tests. The franchisee is responsible for ensuring that their real estate brokerage is open during local normal business hours for residential real estate brokerages and that their employees observe the obligations under the Franchise Agreement.
In practical terms, this means that an Engel & Volkers franchisee needs to carefully vet potential hires to ensure they meet the brand's standards for qualifications, experience, and credentials, in addition to holding the necessary licenses. The franchisee also bears the responsibility of ensuring these individuals receive and pass the required training provided by Engel & Volkers. This ensures that all personnel involved in real estate activities are well-prepared and compliant with both legal and brand standards.