Does the Engel & Volkers Franchise Agreement contain provisions related to dispute resolution?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
– 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 | | | 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. |---|---|---|
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
Yes, according to Engel & Volkers' 2025 Franchise Disclosure Document, the franchise agreement includes provisions related to dispute resolution, as summarized in Item 17. Specifically, the choice of law is addressed in Section 26.1, Section 8.3, and Appendix 2 of the Franchise Agreement.
For Engel & Volkers franchises, New York law generally applies to sales of goods and services by Engel & Volkers. However, for sales of goods and services by E&V Residential or its affiliates based in Germany, German law applies. The FDD also notes that this provision may be subject to state law, indicating that certain state laws could override this clause.
Furthermore, the North Dakota Addendum modifies the standard agreement for franchises in North Dakota. It states that the waiver of trial by jury, typically found in Section 27.4 of the Franchise Agreement, is prohibited by North Dakota law and is therefore deleted. Similarly, the waiver of exemplary and punitive damages, usually in Section 27.3 of the Master Licensing Agreement, is also prohibited and deleted in North Dakota. These modifications ensure that franchisees in North Dakota retain their rights to a jury trial and to seek exemplary or punitive damages, regardless of what the standard Engel & Volkers franchise agreement states.