Is the execution of the Release a condition for the Engel & Volkers franchisee to renew the Franchise Agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS ACKNOWLEDGED, FRANCHISEE [AND OWNER EACH] AGREES AS FOLLOWS:
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- Renewal. If Franchisee is signing this Release to renew its franchise, nothing in this Release is intended to disclaim representations Engel & Völkers made in the Franchise Disclosure Document furnished to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the execution of a release is a condition for a franchisee's right to renew their Franchise Agreement. The franchisee, and the owner if applicable, must execute this release to maintain their renewal rights. Refusal to sign the release constitutes a breach of the Franchise Agreement.
This requirement means that as part of the renewal process, Engel & Volkers franchisees must release the company from any and all claims they may have, whether known or unknown, up to the date of the release. This includes any disputes or issues related to the Franchise Agreement or any other aspect of the franchise relationship. The release serves as a comprehensive waiver of rights, ensuring that Engel & Volkers is protected from potential future litigation by the franchisee.
For a prospective franchisee, this condition highlights the importance of carefully considering all aspects of their relationship with Engel & Volkers before seeking renewal. Franchisees should be aware that signing the release means they are giving up their right to pursue any claims against the company, even if those claims are not yet known. It is advisable for franchisees to seek legal counsel to fully understand the implications of the release before signing it.
This requirement is not uncommon in franchising, as franchisors often seek to protect themselves from potential liabilities when renewing agreements. However, franchisees should be diligent in assessing their position and understanding the rights they are waiving. The FDD also states that if the franchisee is signing the release to renew the franchise, nothing in the release is intended to disclaim representations Engel & Volkers made in the Franchise Disclosure Document furnished to the franchisee.