In what district court must litigation be concluded for the Engel & Volkers franchise agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Recipient further agrees that any litigation arising out of or related to this Agreement; any breach of this Agreement; and, all relations and any and all disputes between Recipient on the one hand, and Franchisor on the other hand, whether sounding in contract, tort, or otherwise, will be instituted exclusively in a state or federal court of competent jurisdiction located in New York, NY.
Recipient agrees that any dispute as to the venue for this litigation will be submitted to and resolved exclusively by a state or federal court of competent jurisdiction situated in New York, NY.
Recipient hereby waives and covenants never to assert or claim that said venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, without limitation, any claim under the judicial doctrine of forum non conveniens).
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, any litigation arising from the franchise agreement must be instituted in a state or federal court located in New York, NY. This applies to any disputes related to the agreement, breaches of the agreement, or any relations between the franchisee and Engel & Volkers, regardless of whether the issue involves contract or tort law.
Furthermore, the franchisee agrees that any dispute regarding the venue for litigation will be resolved exclusively by a state or federal court in New York, NY. The franchisee also waives any right to claim that New York is an improper or inconvenient venue.
This clause ensures that Engel & Volkers can manage legal disputes in its preferred jurisdiction, which is a common practice in franchising. However, it may increase costs and logistical challenges for franchisees located outside of New York, as they would need to travel to New York for any legal proceedings.