How does the Engel & Volkers franchise agreement define 'parties' in the context of venue?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Recipient further agrees that any litigation arising out of or related to this Agreement; any breach of this Agreement; and, all relations and any and all disputes between Recipient on the one hand, and Franchisor on the other hand, whether sounding in contract, tort, or otherwise, will be instituted exclusively in a state or federal court of competent jurisdiction located in New York, NY.
Recipient agrees that any dispute as to the venue for this litigation will be submitted to and resolved exclusively by a state or federal court of competent jurisdiction situated in New York, NY.
Recipient hereby waives and covenants never to assert or claim that said venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, without limitation, any claim under the judicial doctrine of forum non conveniens).
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the franchise agreement specifies that any litigation arising from the agreement, a breach of the agreement, or any disputes between the recipient (prospective franchisee) and Engel & Volkers will be exclusively instituted in a state or federal court of competent jurisdiction located in New York, NY. The agreement explicitly identifies the recipient (franchisee) and the franchisor as the parties involved in such disputes.
Furthermore, the recipient agrees that any dispute regarding the venue for litigation will be submitted to and resolved exclusively by a state or federal court of competent jurisdiction in New York, NY. This means that a franchisee is agreeing to have all legal disputes with Engel & Volkers settled in New York, regardless of where the franchisee's business is located.
The recipient also waives any right to claim that New York is an improper or inconvenient venue. This includes waiving claims under the judicial doctrine of forum non conveniens, which allows a court to dismiss a case if another court is better suited to hear it. This clause is significant because it binds the franchisee to a specific legal venue, potentially increasing their costs and logistical challenges if a dispute arises. Franchisees should consider the implications of this clause, especially if they are located far from New York, as it could make resolving disputes with Engel & Volkers more burdensome.