What specific state standards regulate the real estate industry for Engel & Volkers franchisees?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Specific state standards regulate the real estate industry. All states have laws regulating those operations and requiring licensing of real estate brokers and their salespersons or sales advisors. These regulations vary from state to state and can affect your operations. If you operate your own Residential Real
Estate Brokerage, you must either be a real estate broker licensed in your state or have a licensed broker manage your business. In most states, every person who actively participates in the real estate activities of the business and every employee or independent contractor who acts as a salesperson must have a license as a real estate broker, salesperson or other appropriate designated category. You should consult with your own attorney to see whether in your state you may need a real estate broker license even if you do not operate your own Residential Real Estate Brokerage.
You may need other general and specific types of franchises required by the jurisdictions in which you will operate. There may be many other laws that affect your real estate brokerage business, including local laws affecting the terms of your brokerage agreements, advertising and other matters. During the term of your franchise agreement with us we may enter into systemwide supply contracts with service companies, such as banks, mortgage or title companies or insurance companies, which we require you to use, except in cases where you have legitimate commercial or financial reasons for refusing to do so. These systemwide supply contracts will enable you to offer additional services to your clients, for example, mortgage loans and homeowner's insurance. Provision of these kinds of services may require you to obtain additional franchises and to comply with laws regulating these industries. Consult with your lawyer to learn about specific laws applicable to your business.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–15)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the real estate industry is regulated by specific state standards. All states have laws regulating real estate operations, which include the licensing of real estate brokers and their salespersons or sales advisors. These regulations differ from state to state and can impact an Engel & Volkers franchisee's operations.
To operate an Engel & Volkers Residential Real Estate Brokerage, a franchisee must either be a licensed real estate broker in their state or have a licensed broker manage the business. In most states, anyone actively participating in real estate activities, including employees or independent contractors acting as salespersons, must hold a license as a real estate broker, salesperson, or another appropriately designated category.
Furthermore, prospective Engel & Volkers franchisees may need to obtain other general and specific franchises required by the jurisdictions in which they operate. Local laws can also affect the terms of brokerage agreements, advertising, and other aspects of the business. The document advises consulting with an attorney to understand the specific laws applicable to the franchisee's business. During the franchise term, Engel & Volkers may establish systemwide supply contracts with service companies, such as banks, mortgage or title companies, or insurance companies, which franchisees may be required to use unless they have legitimate commercial or financial reasons to refuse. These contracts may enable franchisees to offer additional services to clients, potentially requiring additional franchises and compliance with laws regulating those industries.