In which court must any litigation or dispute between an Engel & Volkers franchisee and franchisor be instituted?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| w. Choice of law | §26.1 §8.3, Appendix 2 | New York law applies. For sales of goods and services by us, New York law applies. For sales of goods and services by E&V Residential or its affiliates based in Germany, German law applies. This provision may be subject to state law. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, New York law applies to agreements. Specifically, Section 26.1, Section 8.3, and Appendix 2 of the franchise agreement state that New York law governs the agreement between Engel & Volkers and its franchisees. However, for sales of goods and services by E&V Residential or its affiliates based in Germany, German law applies.
This means that the franchise agreement is interpreted under New York law, which provides a legal framework for resolving disputes. However, this provision may be subject to state law, potentially introducing variations based on the franchisee's location.
For prospective Engel & Volkers franchisees, it's crucial to understand that while New York law generally applies, there might be exceptions or additional considerations based on their specific state laws. Franchisees should seek legal counsel to fully understand the implications of the choice of law provision in their specific circumstances, especially considering that German law applies to sales of goods and services by E&V Residential or its affiliates based in Germany.