What is the scope of advertising, promotion, and other activities that Engel & Volkers can set requirements and restrictions on?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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
of one or more other franchisees or that is specifically targeted or directed towards the protected areas of one or more other franchisees. Such requirements and restrictions are intended to balance the ability of franchisees to freely compete in the marketplace and the right of a franchisee to operate within its protected area without undue interference from other franchisees, and Franchisor shall have full discretion in its determination of such balance. Franchisee agrees to comply with all such requirements and restrictions.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers has the authority to set requirements and restrictions on advertising, promotion, and other activities if it determines, in its sole discretion, that these activities negatively impact other franchisees or are specifically targeted toward the protected areas of other franchisees. These requirements and restrictions are designed to balance the ability of franchisees to compete freely and the right of a franchisee to operate within their protected area without undue interference. Engel & Volkers retains full discretion in determining this balance, and franchisees must comply with all such requirements and restrictions. This ensures that Engel & Volkers can maintain a level playing field and protect the interests of individual franchisees within the system.
Engel & Volkers also maintains control over the creative concepts and materials used in advertising programs, as well as the placement and allocation of advertising funds from the National Marketing and Technology Fund. Franchisees must use only the design formats provided by Engel & Volkers for advertising and displays, which are subject to ongoing improvement and standardization. Franchisees must obtain prior written consent from Engel & Volkers for any advertising or sales promotion campaign design that deviates significantly from previously recommended practices or the System Documentation. This oversight ensures that all advertising aligns with the Engel & Volkers brand standards and promotes a consistent image.
Furthermore, franchisees are restricted from using any text, copy, photography, images, sound, or video to promote their services or listings without proper authorization or a license. Franchisees must also refrain from any business or advertising practice that might harm Engel & Volkers' business or the goodwill associated with the Engel & Volkers system or trademarks. Engel & Volkers may review and monitor all online content on social media sites, blogs, and other online platforms where the trademarks are used, and franchisees must remove any content that Engel & Volkers deems scandalous, immoral, or detrimental to its image. These measures allow Engel & Volkers to maintain brand integrity and protect its reputation across all advertising and promotional channels.