Under what condition can an Engel & Volkers franchisee engage in other business activities that involve competitive residential or commercial real estate agency services?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
With the prior written approval of Franchisor, Franchisee may engage in other business activities that do not involve other competitive residential or commercial real estate agency services. However, all these activities must be conducted through a separate legal entity and another trade name and in a manner (including from a separate location if Franchisor, in its sole judgment, believes it is necessary) that eliminates the prospect that the public might believe the business is related to the ENGEL & VÖLKERS System in any way. Franchisor reserves the right to establish policies and procedures in the System Documentation about keeping these activities separate from the franchised Business.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee may engage in other business activities that involve competitive residential or commercial real estate agency services only with the prior written approval of Engel & Volkers. However, all these activities must be conducted through a separate legal entity and under another trade name.
Engel & Volkers also requires that these activities be conducted in a manner that eliminates any possibility that the public might associate the business with the Engel & Volkers system. This may include operating from a separate location if Engel & Volkers believes it is necessary.
Engel & Volkers retains the right to establish policies and procedures in the System Documentation to ensure these activities remain separate from the franchised Engel & Volkers business. This condition aims to protect the brand's reputation and prevent confusion among customers, ensuring the Engel & Volkers franchise maintains its distinct identity.