What is required of an Engel & Volkers franchisee if they engage in other business activities that do not involve competitive residential or commercial real estate agency services?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
With the prior written approval of Franchisor, Franchisee may engage in other business activities that do not involve other competitive residential or commercial real estate agency services. However, all these activities must be conducted through a separate legal entity and another trade name and in a manner (including from a separate location if Franchisor, in its sole judgment, believes it is necessary) that eliminates the prospect that the public might believe the business is related to the ENGEL & VÖLKERS System in any way. Franchisor reserves the right to establish policies and procedures in the System Documentation about keeping these activities separate from the franchised Business.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, a franchisee may engage in other business activities that do not involve competitive residential or commercial real estate agency services, provided they meet specific conditions. The franchisee must obtain prior written approval from Engel & Volkers to engage in these activities.
Engel & Volkers requires that all such activities be conducted through a separate legal entity and under a different trade name. This separation aims to eliminate any potential confusion among the public that the other business is related to the Engel & Volkers system.
Furthermore, Engel & Volkers may require the franchisee to operate the other business from a separate location if they believe it is necessary to maintain a clear distinction between the businesses. Engel & Volkers retains the right to establish policies and procedures in the System Documentation to ensure these activities remain separate from the franchised Engel & Volkers business.