What is the condition that must be met for the Settlement Agreement involving Engel & Volkers to become effective?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the Settlement Agreement in the case involving Benny Cheatham, et al, will become effective once the appeals affirming final approval are resolved. Objectors to the settlement filed four separate appeals: Don Gibson, et al v. Monty March, 24-3478 (8th Cir.); Don Gibson, et al v. Robert Friedman, et al, 24-3481 (8th Cir.); Don Gibson, et al v. James Mullis, 24-3473 (8th Cir.); and Don Gibson, et al v. Benny Cheatham, et al, 24-3564 (8th Cir.).

This means that even though Engel & Volkers has reached a settlement, the actual implementation of the agreement is contingent on the outcome of these appeals. If the appeals do not affirm the final approval, the settlement may not proceed as initially agreed. The objector-appellants' briefs are currently due on April 21, 2025.

For a prospective franchisee, this highlights the importance of understanding that legal settlements can be complex and may not always be immediately finalized. It also demonstrates that Engel & Volkers is involved in ongoing litigation that could potentially impact the franchise system. Therefore, it would be prudent for potential franchisees to monitor the outcomes of these appeals and assess any potential risks associated with the litigation before investing in an Engel & Volkers franchise.