Is the execution of the Release a condition for the Engel & Volkers franchisee to transfer 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.
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 to transfer their Franchise Agreement. The franchisee, and the owner if the franchisee is a business entity, must execute this release as part of the transfer requirements.
Specifically, the FDD states that the franchisee understands and agrees that executing the release is a condition of their rights to transfer the Franchise Agreement. Refusal to execute the release would result in the franchisee breaching the Franchise Agreement. This requirement ensures that Engel & Volkers is protected from potential future claims related to the franchise agreement or the transfer itself.
This condition is in place to provide Engel & Volkers with a comprehensive release from any potential liabilities or claims that the franchisee or their owners might have. By requiring this release, Engel & Volkers aims to create a clean break and avoid future legal disputes related to the franchise agreement or its transfer. This is a fairly standard practice in franchising to protect the franchisor during ownership changes.