Does the Engel & Volkers Franchise Agreement disclaim the representations made in the Franchise Disclosure Document?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum pertains to franchises sold in the state that have adopted as law the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements (the "SOP") and is for the purpose of complying with the statutes and regulations of such states. For franchises sold in such states, this franchise disclosure document is amended by adding the following section at the end of Item 9:
"No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise."
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, for franchises sold in states that have adopted the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements, the document includes a specific provision to protect franchisees. This provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including claims of fraud in the inducement.
Specifically, this means that an Engel & Volkers franchisee in these states cannot disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on their behalf. This addendum is designed to supersede any other conflicting terms within any document executed in connection with the franchise agreement. This offers a level of protection to the franchisee, ensuring that they can hold Engel & Volkers accountable for representations made during the franchise sales process.
This type of provision is not universally included in all franchise agreements, so it represents a potentially beneficial term for franchisees in the specified states. Franchisees should still carefully review all documents and seek legal counsel, but this addendum provides an additional layer of security against unintentionally waiving rights or disclaiming reliance on franchisor statements.