Who benefits from the provisions of the Engel & Volkers guarantee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.2 Third Party Beneficiary: Franchisee and the Principals acknowledge that the Engel & Völkers Group, its Parent, E&V Marken, Grund Genug Verlag and their affiliates are each intended to be a third party beneficiary of this Agreement.
Except as otherwise expressly provided herein, nothing in this Agreement is intended, nor shall be deemed, to confer any rights or remedies upon any person or legal entity not a party hereto.
Franchisee hereby understands, acknowledges and agrees that the Engel & Völkers Group, its Parent, E&V Marken, Grund Genug Verlag and their affiliates, as third party beneficiaries under this Agreement, have the absolute right to enforce all of the terms and provisions of this Agreement should Franchisor fail or otherwise refuse to do so.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Engel & Völkers Group, its Parent, E&V Marken, Grund Genug Verlag and their affiliates are intended to be third-party beneficiaries of the franchise agreement. This means these entities have specific rights and protections under the agreement, even though they are not direct parties to the contract between Engel & Volkers (the franchisor) and the franchisee.
As third-party beneficiaries, these entities have the right to enforce all the terms and provisions of the Franchise Agreement if Engel & Volkers fails or refuses to do so. This provision ensures that the broader Engel & Völkers network and related companies have legal recourse to protect their interests and the integrity of the brand.
For a prospective franchisee, this clause highlights the importance of understanding the obligations and potential liabilities not only to Engel & Volkers but also to its affiliated entities. It also means that disputes could involve a wider range of parties than just the franchisee and franchisor. Franchisees should seek legal counsel to fully understand the implications of third-party beneficiary clauses in their franchise agreement.