How is a dispute regarding the value of assets or consideration determined in an Engel & Volkers assignment?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Any dispute regarding the value of all or any part of the assets or rights proposed to be assigned and/or the consideration proposed to be paid or payable to Franchisee or any third party in connection with the proposed assignment shall be determined by a reputable independent appraiser Franchisor selects, and Franchisee and Franchisor equally share the expense of, whose determination will be final and binding on all parties.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, if there is a disagreement about the value of assets or the consideration to be paid during an assignment, Engel & Volkers will select a reputable independent appraiser to determine the value.
The cost of this appraiser is equally shared between Engel & Volkers and the franchisee. The determination made by the appraiser is considered final and binding for all involved parties. This process ensures an objective valuation in the event of a dispute during the assignment of assets or rights.
This clause protects both the franchisee and Engel & Volkers by providing a clear, structured method for resolving valuation disputes. By using an independent appraiser, the process aims to be impartial and fair, preventing either party from unilaterally dictating the value of the assets or consideration. Franchisees should be aware of this process, as it will govern how such disputes are resolved should they arise during a potential assignment.