What is the consequence if the Engel & Volkers franchisee or owner fails or refuses to execute the Release?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee [and Owner each] agrees that all capitalized terms in this Release shall have the meaning that is ascribed to them in the Franchise Agreement. This Release is being executed by the Franchisee [and the Owner] pursuant to the requirements of the Franchise Agreement. Franchisee [and Owner each] understands and agrees that execution of this Release is a condition of Franchisee's rights under the Franchise Agreement [to renew the Franchise Agreement] [to transfer the Franchise Agreement] and that Franchisee's [or Owner's] failure or refusal to execute this Release would result in Franchisee's breach of the Franchise Agreement. In consideration of the rights granted by the Franchise Agreement, Franchisee [and Owner each] executes this Release for the benefit of Engel & Völkers.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, both the franchisee and the owner must execute the release as a condition of the franchisee's rights under the Franchise Agreement. Specifically, this condition applies to the franchisee's rights to renew or transfer the Franchise Agreement.
Therefore, if either the Engel & Volkers franchisee or the owner fails or refuses to execute the release, it would result in the franchisee breaching the Franchise Agreement. This is a significant point for prospective franchisees to consider, as failure to comply with this requirement could jeopardize their ability to renew or transfer their franchise.
This requirement ensures that Engel & Volkers is protected from potential future claims related to the franchise agreement. Franchisees should carefully review the terms of the release and understand their obligations before signing the agreement.