Does Engel & Volkers require a visible notice of status as an independent brokerage?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's company
will operate under the name set forth in the summary attached as Appendix 1.Franchisee shall place a conspicuous notice on or near the front entrance of its Residential Real Estate Brokerage that clearly states: "[NAME OF FRANCHISEE] IS AN INDEPENDENTLY OWNED AND OPERATED FRANCHISED BUSINESS" or any modification of this statement as Franchisor may require in the System Documentation ("the Disclaimer"). Franchisee must include the Disclaimer in all dealings with customers, contractors, suppliers, public officials, members of the public, and on all signage, business cards, stationery, promotional and advertising materials, online communications, real estate documents and all other materials it uses. Franchisee shall obtain such fictitious or assumed name registrations as may be required under applicable law or as may be required by Franchisor to distinguish itself from Franchisor. Franchisee must obtain Franchisor's written approval before using, registering or changing any assumed name or trade name. Franchisee may not publicly announce any assumed name/trade name until such name has been approved in writing by Franchisor. Any assumed name/trade name listed in Appendix 1 is deemed approved as of the Effective Date. If permission is granted to use the names ENGEL & VÖLKERS**®, ENGEL & VOLKERS, ENGEL & VOELKERS, E&V®**, EV, EV Real Estate, E&V Real Estate or any other similar name in Franchisee's legal name or any fictitious or assumed name, Franchisee must promptly remove that name from its legal name, or if applicable, promptly terminate the fictitious or assumed name registration, upon termination or expiration of this Agreement. While it is the parties' intention that Franchisee will operate under the same trade name and assumed name throughout the Term, Franchisor reserves the right to require Franchisee to change its trade name and assumed name, if in Franchisor's opinion the existing trade name or assumed name causes, or is likely to cause, confusion among consumers as to the relationship between Franchisor or another franchisee, about the area serviced by Franchisee, or similar matters. The cost of changing trade name or assumed name will be borne by Franchisee, provided that Franchisor will endeavor to keep such expenses as low as reasonably possible.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are required to display a conspicuous notice indicating their independent ownership and operation. This notice must be placed on or near the front entrance of the Residential Real Estate Brokerage. The specific wording required is: "[NAME OF FRANCHISEE] IS AN INDEPENDENTLY OWNED AND OPERATED FRANCHISED BUSINESS" or any modification of this statement as Engel & Volkers may require in the System Documentation.
This disclaimer is not limited to the physical premises. Engel & Volkers requires that the disclaimer be included in all dealings with customers, contractors, suppliers, public officials, members of the public, and on all signage, business cards, stationery, promotional and advertising materials, online communications, real estate documents and all other materials the franchisee uses. This comprehensive requirement ensures that all parties interacting with the Engel & Volkers franchisee are aware of the independent nature of the business.
The franchisee is also responsible for obtaining any necessary fictitious or assumed name registrations to further distinguish themselves from Engel & Volkers, subject to the franchisor's written approval. While Engel & Volkers intends for the franchisee to operate under the same trade name throughout the term of the agreement, Engel & Volkers retains the right to require the franchisee to change its trade name if the existing name causes confusion among consumers regarding the relationship between Engel & Volkers, other franchisees, or the area serviced by the franchisee. The franchisee bears the cost of changing the trade name, although Engel & Volkers will attempt to minimize these expenses.