Under what condition can an Engel & Volkers franchisee engage in activities incompatible with the Engel & Volkers System?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby agrees not to encourage or permit any activities in its Residential Real Estate Brokerage which are incompatible with this Agreement, the ENGEL & VÖLKERS System or with the type of properties covered by this Agreement.
Any exceptions to this rule shall require the prior written consent of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee can engage in activities incompatible with the Engel & Volkers System if they obtain prior written consent from the franchisor. Engel & Volkers maintains the right to grant or deny these exceptions.
This condition ensures that franchisees primarily adhere to the Engel & Volkers System to maintain brand consistency and quality. However, it also allows for flexibility if a franchisee identifies a unique opportunity or service that might fall outside the standard system but could still benefit their business.
For a prospective franchisee, this means that while they are expected to operate within the established Engel & Volkers framework, they are not entirely restricted from pursuing other business activities. However, they must seek and receive explicit approval from Engel & Volkers before engaging in any such activities, which provides Engel & Volkers with control over brand standards and market positioning.