What specific date did the State of Washington commence its investigation into Engel & Volkers?
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's 2025 Franchise Disclosure Document, the State of Washington commenced its investigation into Engel & Völkers Americas, Inc. on August 16, 2019. The Washington State Office of the Attorney General initiated this investigation in August 2019, focusing on "no-poach" provisions within Engel & Volkers' franchise agreements for its residential brokerage program. This investigation was part of a broader inquiry into the use of no-poach provisions by franchisors in general.
The matter was resolved when Engel & Volkers and the Washington State Office of the Attorney General entered into an Assurance of Discontinuance, which was approved by the King County Superior Court on September 30, 2019. As part of this agreement, Engel & Volkers committed to not enforcing no-poaching provisions in its existing agreements across the U.S. and to attempt to amend its agreements with franchisees in Washington to remove these provisions.
For a prospective franchisee, this litigation detail indicates that Engel & Volkers has faced scrutiny regarding its franchise agreement terms and has taken steps to address concerns raised by regulatory bodies. It also shows that Engel & Volkers is willing to negotiate and resolve legal matters through agreements that may require changes to its standard franchise agreements. This could be seen as a positive sign, demonstrating the brand's commitment to compliance and adaptability in response to legal challenges.