Does the Engel & Volkers franchise agreement allow a franchisee to disclaim reliance on statements made by the franchisor or their representatives through any statement, questionnaire, or acknowledgment signed at the beginning of the franchise relationship?

According to the 2025 Engel & Volkers Franchise Disclosure Document, franchisees in certain states are protected from waiving claims of reliance on franchisor statements. Specifically, for states that have adopted the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements, any statement, questionnaire, or acknowledgment signed at the commencement of the franchise relationship cannot disclaim reliance on statements made by Engel & Volkers, its franchise sellers, or representatives. This protection extends to claims under applicable state franchise law, including fraud in the inducement.

This provision ensures that franchisees in covered states cannot inadvertently waive their right to pursue legal action based on misrepresentations made during the franchise sales process. It overrides any conflicting terms in other franchise documents, strengthening the franchisee's position. The states covered by this addendum are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.

For a prospective Engel & Volkers franchisee, this means that any attempt by the franchisor to include a clause that prevents the franchisee from claiming they relied on statements made by the franchisor during the sales process will be unenforceable in these states. This provides an added layer of security, allowing franchisees to hold Engel & Volkers accountable for representations made to induce them into the franchise agreement. Franchisees in states not listed should seek legal counsel to understand their rights regarding reliance on franchisor statements.