For Engel & Volkers California franchisees, who is required to sign the release document?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
"A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."
In making this voluntary express waiver, Franchisee [and Owner each] acknowledges that Claims or facts in addition to or different from those which are now known or believed to exist with respect to the matters mentioned herein may later be discovered and that it is the intention of Franchisee [and Owner, respectively] to hereby fully and forever settle and release any and all matters, regardless of the possibility of later discovered Claims or facts. This Release is and shall be and remain a full, complete and unconditional general release. Franchisee [and Owner each] acknowledges and agrees that the foregoing waiver of Section 1542 is an essential, integral and material term of this Release.
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- Release Not Admission. Franchisee [and Owner each] understands and agrees that the giving or acceptance of this Release and the agreements contained herein shall not constitute or be construed as an admission of any liability by Engel & Völkers or an admission of the validity of any Claims made by or against Engel & Völkers.
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- Renewal. If Franchisee is signing this Release to renew its franchise, nothing in this Release is intended to disclaim representations Engel & Völkers made in the Franchise Disclosure Document furnished to Franchisee.
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- Authority of Parties. Each person executing this Release on behalf of a party hereto warrants and represents that they are duly authorized to execute this Release on behalf of such party.
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- No Prior Assignments. Franchisee [and Owner each] represents and warrants that Franchisee [and Owner] has not previously assigned or transferred, or attempted to assign or transfer, to any third party any of the Claims which are the subject of this Release, all of such Claims being released.
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- Incorporation by Reference. The parties hereby incorporate the recitals of this Release as part of the substantive provisions of this Agreement.
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- Controlling Law. This Release shall be governed, construed and interpreted in accordance with the substantive laws of the state where the franchised business and the residential real estate brokerage is located.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, both the franchisee and the owner are required to sign the release document. The document states that the franchisee and owner each acknowledge that claims or facts, in addition to or different from those which are now known or believed to exist with respect to the matters mentioned herein, may later be discovered. It is the intention of the franchisee and owner, respectively, to fully and forever settle and release any and all matters, regardless of the possibility of later discovered claims or facts.
This release serves as a complete and unconditional general release, with both the franchisee and owner acknowledging and agreeing that the waiver of Section 1542 is an essential, integral, and material term. The document also clarifies that the release does not constitute an admission of liability by Engel & Volkers or an admission of the validity of any claims made by or against Engel & Volkers.
Furthermore, if the franchisee is signing the release to renew its franchise, the document specifies that nothing in the release is intended to disclaim representations Engel & Volkers made in the Franchise Disclosure Document furnished to the franchisee. Each person executing the release on behalf of a party warrants and represents that they are duly authorized to execute the release on behalf of such party. The franchisee and owner each represent and warrant that they have not previously assigned or transferred any of the claims which are the subject of this release to any third party.
This requirement ensures that all parties with a vested interest in the franchise, including both the franchisee and the owner, are bound by the terms of the release, mitigating potential future disputes and liabilities for Engel & Volkers. Prospective franchisees should carefully review the terms of the release with legal counsel to fully understand their obligations and rights.