What is the condition for paying the Attorneys' Fees to Engel & Volkers?

According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees are responsible for Engel & Volkers' costs and attorney's fees if Engel & Volkers incurs them in any litigation proceeding with the franchisee in which Engel & Volkers prevails. This also applies if Engel & Volkers has to obtain an injunction against the franchisee. The amount of these attorney's fees varies and is due on demand.

This means that if a franchisee is involved in a legal dispute with Engel & Volkers and Engel & Volkers wins the case or obtains a court order against the franchisee, the franchisee will have to cover Engel & Volkers' legal expenses. This could potentially include a wide range of costs, such as lawyer's hourly fees, court filing fees, expert witness fees, and other related expenses. The franchisee will be required to pay these fees promptly upon receiving a demand for payment from Engel & Volkers.

This condition is fairly standard in franchise agreements, as it aims to protect the franchisor from incurring legal costs due to the franchisee's actions or breaches of contract. However, it also places a significant financial risk on the franchisee, as legal battles can be expensive, and the franchisee may be responsible for Engel & Volkers' legal fees in addition to their own. Prospective franchisees should carefully consider this potential liability and factor it into their financial planning.

It is important for prospective Engel & Volkers franchisees to fully understand the circumstances under which they could be liable for the franchisor's attorney's fees. Franchisees should maintain open communication with Engel & Volkers and seek legal counsel if they find themselves in a dispute with the franchisor to understand their rights and obligations.