Can Engel & Volkers set requirements and restrictions on advertising and promotion?
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 such activities negatively impact other franchisees or are specifically targeted towards other franchisees' protected areas. These requirements and restrictions are intended to balance franchisees' ability to compete freely and the right of a franchisee to operate within its protected area without undue interference. Engel & Volkers retains full discretion in determining this balance, and franchisees must comply with all such requirements and restrictions.
Engel & Volkers also requires franchisees to use only the design formats provided by them for advertising and displays, which are subject to ongoing improvement. Franchisees must obtain prior written consent from Engel & Volkers for each advertising and/or sales promotion campaign design format unless it does not essentially depart from those previously practiced or recommended by Engel & Volkers or outlined in the System Documentation. This ensures standardization within the Engel & Volkers system.
Furthermore, franchisees are not allowed to use any unauthorized text, copy, photography, images, sound, or video to promote their services or listings without proper authorization or a license. Franchisees must also avoid any business or advertising practice that might harm Engel & Volkers' business or the goodwill associated with the Engel & Volkers system or trademarks. These measures are in place to protect the brand's reputation and ensure consistent messaging across all franchise locations.
These stipulations are fairly typical in franchising, as franchisors seek to maintain brand consistency and prevent conflicts between franchisees. Prospective Engel & Volkers franchisees should carefully review the System Documentation and advertising guidelines to understand the specific requirements and restrictions, and should also be aware of the potential for Engel & Volkers to modify these requirements over time.