Besides the parties to the Engel & Volkers franchise agreement, which entities are considered intended third-party beneficiaries?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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's 2025 Franchise Disclosure Document, several entities are explicitly designated as intended third-party beneficiaries to the franchise agreement. These include the Engel & Völkers Group, its Parent company, E&V Marken, Grund Genug Verlag, and their respective affiliates. This designation means that these entities, while not direct signatories to the agreement between the franchisor and franchisee, are granted specific rights and protections under the agreement.
Specifically, the FDD states that these third-party beneficiaries have the right to enforce all terms and provisions of the agreement if the franchisor fails or refuses to do so. This provision is significant because it provides these entities with a legal avenue to ensure compliance with the franchise agreement, even if the franchisor does not actively pursue enforcement. This could be particularly relevant in situations where the franchisor's interests may not align perfectly with those of the Engel & Völkers Group or its affiliates.
For a prospective Engel & Volkers franchisee, this clause means that their obligations under the franchise agreement extend not only to the franchisor but also to these named third-party beneficiaries. The franchisee must be aware that these entities have the power to take legal action to enforce the agreement, adding another layer of oversight and accountability to the franchise relationship. It is important for franchisees to fully understand the implications of this third-party beneficiary clause and how it might affect their operations and decision-making within the Engel & Volkers system.