In the event of a franchise assignment, are the Engel & Volkers franchisee, its owners/guarantors, and the assignee required to execute a General Release?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.3.13 That Franchisee and, if Franchisee is a business entity, each of its owners and guarantors, and the assignee (and if the assignee is a business entity, each of its owners and guarantors) execute Franchisor's then-standard form of General Release.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, in the event of a franchise assignment, the franchisee, its owners and guarantors, and the assignee are required to execute a General Release. This release is Engel & Volkers's standard form.
This requirement ensures that Engel & Volkers is protected from potential liabilities or claims that may arise from the previous franchisee's operations or from the transfer itself. By signing a general release, all parties involved waive their rights to pursue any legal actions against Engel & Volkers related to the franchise agreement or the assignment.
For a prospective Engel & Volkers franchisee, this means that if they decide to sell their franchise, they, along with their owners/guarantors and the buyer (assignee), must sign this release. Franchisees should carefully review the terms of the General Release with legal counsel to understand the full scope of what they are waiving before proceeding with an assignment.