What is the Engel & Volkers agreement's definition of 'Franchise Agreement'?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchise Agreement dated _ | (the "Franchise Agreement") by and between ENGEL |
|---|---|
| & VÖLKERS AMERICAS, INC. ("Franchisor") and | ("Franchisee"), and |
| for other good and valuable consideration, each of the undersigned hereby, for themselves, their heirs, | |
| successors and assigns, jointly, individually and severally, personally, absolutely and unconditionally: | |
| (1) guarantees to Franchisor and its parent and affiliates and their successors and assigns, for the term of | |
| the Franchise Agreement and thereafter as provided in the Franchise Agreement, that Franchisee shall | |
| punctually pay and perform each and every undertaking, agreement and covenant set forth in the Franchise | |
| Agreement and any documents, agreements, instruments and promissory notes executed pursuant to or in | |
| connection with the Franchise Agreement (collectively, the "Franchise Documents"); and (2) agrees to be | |
| personally bound by, and personally liable for the breach of, each and every provision in the Franchise | |
| Documents applicable to Principals of Franchisee. If more than one person has executed this Guarantee, | |
| the term "the undersigned", as used herein, shall refer to each such person, and the liability of each of the |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Franchise Agreement is referenced in a guarantee clause. This clause stipulates that the franchisee must adhere to all terms and conditions outlined within the Franchise Agreement and any related documents.
Specifically, the guarantee ensures that the franchisee will punctually fulfill every commitment, agreement, and covenant detailed in the Franchise Agreement. This extends to any associated documents, agreements, instruments, and promissory notes executed in connection with the Franchise Agreement, collectively referred to as the "Franchise Documents."
Furthermore, principals of the franchisee are personally bound by and liable for any breaches of the Franchise Documents. This personal guarantee underscores the seriousness of the obligations and ensures that individuals with a controlling interest in the franchise are held accountable for its performance and adherence to the agreement's terms.
This definition highlights the comprehensive nature of the Franchise Agreement and the associated responsibilities of both the franchisee and its principals. It emphasizes the legal and financial commitments involved in becoming an Engel & Volkers franchisee and the importance of understanding all aspects of the agreement and related documents.