In what specific court was the State of Washington case against Engel & Volkers filed?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In Re: Franchise No Poaching Provisions, State of Washington v. Engel & Völkers Americas,Inc., State of Washington, King County Superior Court, No. 19-2-25518-8, commenced on August 16, 2019. In August of 2019 the Washington State Office of the Attorney General initiated an investigation into "nopoach" provisions used by Engel & Völkers in its franchise agreements for its residential brokerage program. The investigation was part of a broader investigation into the use of no-poach provisions by franchisors in general. The matter was resolved by Engel & Völkers and the Washington State Office of the Attorney General entering into an Assurance of Discontinuance, approved by the King County Superior Court on September 30, 2019. Pursuant to the Assurance of Discontinuance Engel & Völkers agreed to not enforce no-poaching provisions in its existing agreements in the U.S. and attempt to amend its agreements with franchisees in Washington to delete such provisions.
Source: Item 3 — LITIGATION (FDD pages 17–21)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the case initiated by the State of Washington against Engel & Völkers Americas, Inc. was filed in the King County Superior Court. The case, identified as No. 19-2-25518-8, was commenced on August 16, 2019. The investigation was part of a broader investigation into the use of no-poach provisions by franchisors in general. The matter was resolved by Engel & Völkers and the Washington State Office of the Attorney General entering into an Assurance of Discontinuance, approved by the King County Superior Court on September 30, 2019.
The case revolved around an investigation by the Washington State Office of the Attorney General into "no-poach" provisions that Engel & Volkers used in its franchise agreements for its residential brokerage program. These provisions restrict the ability of franchisees to hire employees from other franchisees within the same system. The resolution of the case involved Engel & Volkers agreeing not to enforce these no-poaching provisions in their existing agreements across the U.S.
For a prospective franchisee, this indicates that Engel & Volkers has taken steps to address concerns regarding restrictive employment practices. The Assurance of Discontinuance means that Engel & Volkers has committed to refraining from enforcing no-poaching clauses, which could provide more flexibility for franchisees in managing their workforce. This also suggests that Engel & Volkers is responsive to regulatory scrutiny and willing to adapt its practices to comply with legal requirements, which may be a positive sign for franchisees concerned about legal compliance and ethical business practices.