factual

Where can I find a summary of the provisions for renewal, termination, transfer, and dispute resolution in the Engel & Volkers Franchise Agreement?

Engel_Volkers Franchise · 2025 FDD

Answer from 2025 FDD Document

wing tables list important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Franchise Disclosure Document.**

FRANCHISE AGREEMENT

Provision Section in Franchise Agreement Summary
a. Length of the franchise §19.1 10 years
term
b. Renewal or extension of §§19.2, 19.3 1 period of 10 years
the term
c. Requirements for franchisee to renew or extend §§19.2, 19.3 Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract.
d. Termination by §20.1 You may not terminate or cancel the Franchise
franchisee Agreement. This provision is subject to state law.
e. Termination by franchisor without cause §§4.8 We can terminate upon written notice to you if we lose our rights to use the Engel & Völkers System and Trademarks.
f. Termination by franchisor with cause §§20.2 – 20.4, We can only terminate if you default, except if we lose our rights to use the Engel & Völkers System and Trademarks.
Provision Section in Summary
Franchise
Agreement
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w. Choice of law §26.1 §8.3, Appendix 2 New York law applies. For sales of goods and services by us, New York law applies. For sales of goods and services by E&V Residential or its affiliates based in Germany, German law applies. This provision may be subject to state law.
Provision Section in Summary
----------- ------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Franchise
Agreement
agreement with us or our affiliates and the default
under that agreement is not curable or you or your
affiliate did not cure it during the cure period (and we
may also terminate the other agreement if you are in
default under the Franchise Agreement); you omitted
or misrepresented any material fact in the information
you furnished to us in connection with our decision to
enter into a Franchise Agreement with you; you and
we agree to terminate the Franchise Agreement; you
purport to transfer any interest in your franchise to a
third party in violation of the Franchise Agreement;
you use or duplicate any aspects of the Engel &
Völkers System, services, program or products in an
unauthorized fashion; you engage in any business or
market any services under a name or mark that in our
opinion is confusingly similar to the Trademarks; you
abandon or cease to operate your franchised business;
you knowingly conceal revenues, maintain false
books or records, falsify information or otherwise
defraud or make false representations to us; you do
not maintain required financial records, you are
found, after our audit, to have understated your
revenues by 2% or more at least three times within
any 36-months period, or by 5% for a reporting
period; you take, withhold, misdirect or appropriate
funds for your own use from your employees' wages,
us or you systematically fail to deal fair and honestly
with your staff members, clients, sales advisors or
suppliers, or fail to take action against or discharge an
agent, servant or staff member sho embezzled funds;
you commit the same act of default within six month
after having cured a default under Section 20.4; you
attempt to or interfere in our contractual relationships;
you engage in a practice that subjects you or us to
widespread publicity, ridicule and derision; you
breach a provision of the Franchise Agreement
relating to our advertising standards (incl. but not
limited to our corporate identity) which is not cured
within 3 days after our written notice thereof, your
licenses to operate the franchised business or other
governmental authorizations are revoked or
terminated or you engage in any act or conduct, or
fail to engage in any act or conduct, which authorizes
us under the Franchise Agreement to terminate you
immediately upon notice to you.
Provision Section in Franchise Agreement Summary
In addition the Franchise Agreement will terminate
automatically without us giving you notice if you, the
entity that you operate the Engel & Völkers
Residential Real Estate Brokerage through, one of
your affiliates, or any guarantor of the Franchise
Agreement (each a "Franchisee Party") is adjudicated
bankrupt or insolvent; all or substantially all of the
assets of the Engel & Völkers Residential Real Estate
Brokerage are assigned to a creditor, a petition in
bankruptcy is filed against any of the Franchisee
Party and is not immediately contested or dismissed
within 60 days; a Franchisee Party has an order for
relief in bankruptcy, insolvency, reorganization,
receivership or under statutes granting similar rights
filed against it or agrees to the entry of an order for
relief in an involuntary proceeding or conversion of
an involuntary proceeding to a voluntary proceeding
under such law; a bill in equity or other proceeding
for the appointment of a receiver or other custodian of
a Franchisee Party or their assets is filed and
consented to by you; a receiver or other custodian of
all or part of a Franchisee Party's assets is appointed
by a court of competent jurisdiction; proceedings for
composition with creditors are instituted against a
Franchisee Party; a Franchisee Party is dissolved;
execution is levied against a franchisee Party;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)

What This Means (2025 FDD)

According to Engel & Volkers' 2025 Franchise Disclosure Document, Item 17 provides a summary of the provisions for renewal, termination, transfer, and dispute resolution in the Franchise Agreement.

The table in Item 17 outlines key aspects such as the initial franchise term, which is 10 years, and the conditions for renewal, including written notice at least six months before the current term expires, compliance with the existing agreement, signing the current franchise agreement, signing a general release, and paying a renewal fee. It is important to note that Engel & Volkers may ask you to sign a contract with materially different terms and conditions than your original contract.

The document also summarizes conditions under which Engel & Volkers can terminate the agreement with or without cause, as well as stipulations regarding non-competition during and after the franchise term. For dispute resolution, the agreement specifies that New York law applies and that any litigation must occur in the Southern District of New York, although these provisions may be subject to state law. Additionally, any modifications to the agreement must be in writing and signed by both parties to be effective.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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