What are the Engel & Volkers's obligations regarding advertising as described in Item 11, and how do these relate to the franchisee's obligations to participate in marketing campaigns as mentioned in Item 9?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your franchised business, we will:
- (7) Make available marketing materials and products and provide specifications regarding the Brokerage Design for equipment, signs, fixtures, though we do not deliver or install any such items. (Franchise Agreement, Sections 1.3, 10).
- (8) Make our proprietary Integrated Product Suite available and integrate you into the Engel & Völkers information technology network. (Franchise Agreement, Section 5.1.6.)
We have set up a National Marketing and Technology Fund and can require you to make monthly contributions to the National Marketing and Technology Fund as described in Item 6.
You are not permitted to have an individual franchisee website. You may choose, however, to promote your business via alternate online strategies consistent with the Engel & Völkers' online policy. We have the right to review all online content on social media sites, blogs, in electronic communications and on other online sites on which our Trademarks are used to protect the reputation and high quality associated with our Trademarks. We may require you to remove any questionable usage or content involving our Trademarks. We may also require you to cease using our Trademarks at all on such sites.
Within 3 months of opening your Residential Real Estate Brokerage, you must hold an opening public relations event, at your own expense, in accordance with the guidelines set out in the System Documentation.
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
Franchisee will be responsible for Franchisee's own local media public relations in compliance with the ENGEL & VÖLKERS System Documentation. However, Franchisor may provide support from time to time in the form of regional public relations and assistance to Franchisee in general Public Relations activities.
- 10.2 GG Magazine: Franchisor will provide Franchisee from time to time with copies of the GG Magazine for its Approved Location with the cost to be borne by the National
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers has several obligations regarding advertising and marketing support for its franchisees. Engel & Volkers makes marketing materials and products available to franchisees and provides specifications regarding the Brokerage Design for equipment, signs, and fixtures. Engel & Volkers also provides access to its proprietary Integrated Product Suite and integrates franchisees into the Engel & Volkers information technology network. Engel & Volkers has established a National Marketing and Technology Fund, to which franchisees may be required to contribute monthly, as detailed in Item 6. These funds are used for various advertising, marketing, and technology-related activities. Engel & Volkers determines the cost, media, content, format, timing, concentration, and exposure for advertising campaigns and technology programs.
Engel & Volkers retains significant control over advertising and marketing materials used by franchisees. Franchisees must use only those design formats for advertising and displays provided by Engel & Volkers, which are subject to ongoing improvement. Franchisees must obtain prior written consent from Engel & Volkers for each advertising and sales promotion campaign design format, unless it closely follows previously approved designs or System Documentation guidelines. Engel & Volkers also restricts franchisees from using unauthorized text, copy, photography, images, sound, or video to promote their services or listings. Franchisees must refrain from any business or advertising practice that could harm Engel & Volkers's business or goodwill.
While franchisees are responsible for their local media public relations, Engel & Volkers may provide support in the form of regional public relations and general assistance. Engel & Volkers also provides franchisees with copies of the GG Magazine, although the cost is borne by the National Marketing and Technology Fund. Franchisees are not permitted to have individual franchisee websites but can promote their business through alternative online strategies consistent with Engel & Volkers's online policy. Engel & Volkers has the right to review all online content using its trademarks and may require franchisees to remove questionable content or cease using the trademarks altogether. Franchisees are also required to hold an opening public relations event within 3 months of opening their Residential Real Estate Brokerage, at their own expense, following the guidelines in the System Documentation.
Item 9, referenced in the question, is not included in the provided excerpts. Therefore, the relationship between Engel & Volkers's advertising obligations and the franchisee's obligations to participate in marketing campaigns as mentioned in Item 9 cannot be fully explained. A prospective franchisee should ask Engel & Volkers for a copy of Item 9 to understand these obligations and how they relate to the franchisor's advertising responsibilities.