Can Engel & Volkers set requirements and restrictions on advertising and promotion activities of franchisees?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We will issue and modify standards and specifications through the System Documentation as it deems necessary or appropriate for management, marketing, operations and management efficiency. We may set requirements and restrictions on advertising, promotion and other activities that we determine, in our business judgment, 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. You will be informed of new or modified standards in different ways, including via email, letters or in-house brochures, or by way of conferences.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–40)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, Engel & Volkers has the authority to set requirements and restrictions on advertising and promotion activities for its franchisees. These stipulations are implemented if Engel & Volkers determines, in its business judgment, that a franchisee's activities negatively impact other franchisees or specifically target the protected areas of other franchisees. These measures aim to balance the competitive freedom of individual franchisees with the operational rights of franchisees within their designated territories.
Engel & Volkers informs franchisees of these standards and specifications through various channels, including email, letters, in-house brochures, and conferences. This ensures that franchisees are kept up-to-date with any changes or modifications to the advertising and promotion guidelines. Franchisees are expected to adhere to these standards to maintain brand consistency and prevent conflicts within the franchise network.
In addition to the general advertising restrictions, Engel & Volkers requires franchisees to purchase certain marketing materials, such as pens, printed materials, and brochures featuring the trademarks, from Engel & Volkers, its affiliates, or approved suppliers. Furthermore, franchisees operating multiple approved locations must place a minimum number of advertisements in GG Magazines, published by Grund Genug Verlag, an approved supplier. The number of required advertisements increases with the number of approved locations, up to a maximum of three ads per year. These specific requirements ensure that franchisees actively promote the brand and adhere to Engel & Volkers's marketing strategies.