Can Engel & Volkers assign the guarantee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
further understands and agrees
that Recipient's obligations hereunder may not be assigned by Recipient without the prior written consent of Franchisor.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day, month, and year first above written.
| Recipient: | ACKNOWLEDGED BY FRANCHISOR: |
|---|---|
| Signature: | ENGEL & VÖLKERS AMERICAS, INC. |
| Print Name: | |
| Position with Franchisee: | By: |
| Date of signature: | Title: |
| Home address: | Date of signature: |
| By: Title: Date of signature: |
Appendix 4
PRINCIPAL'S GUARANTEE AND ASSUMPTION OF OBLIGATIONS
PRINCIPAL'S GUARANTEE AND ASSUMPTION OF OBLIGATIONS
| 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. |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the guarantee provided by the franchisee's principals to Engel & Volkers and its affiliates is assignable. Specifically, the document states that the guarantee extends to Engel & Volkers' parent company, affiliates, successors, and assigns. This means that if Engel & Volkers were to be acquired or merge with another entity, the new entity would inherit the benefits of the guarantee.
This clause is significant for prospective Engel & Volkers franchisees because it clarifies that the personal guarantee they provide is not limited to the original franchisor. The obligation extends to any successor or assignee of Engel & Volkers, which could include a larger corporation or another franchise company. Therefore, the principals of the franchisee remain liable under the guarantee even if the ownership of the Engel & Volkers franchise changes hands.
In practical terms, this means that the individuals who sign the guarantee cannot assume their obligations will end if Engel & Volkers is sold or transferred. They must understand that their personal liability continues for the duration specified in the Franchise Agreement, regardless of who owns the Engel & Volkers franchise at any given time. This is a fairly standard practice in franchising, as it protects the franchisor's interests in the event of a transfer of ownership.