Does the Engel & Volkers franchise agreement require the franchisee to acknowledge that the statements made are binding?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents, warrants and acknowledges the following statements to be true and correct as of the date Franchisee signs this Agreement, and to be binding on Franchisee:
26.13.1 Franchisee has conducted an independent investigation of the business contemplated by this Agreement.
26.13.2 Franchisee represents that, as an inducement to Franchisor's entry into this Agreement, it has made no misrepresentations in obtaining this agreement.
26.13.3 Franchisee is aware of the fact that other present or future franchisees may operate under different forms of agreement(s), and consequently that Franchisor's obligations and rights with respect to its various franchisees may differ materially
in certain circumstances. Any such variances Franchisor determines for other franchisees, do not grant Franchisee any rights or entitle Franchisee to request a similar modification under this Agreement.
26.13.4 No representation or statement has been made by Franchisor or its affiliates (or any of its or their officers, directors, managers, employees, agents or salespersons) regarding Franchisee's anticipated income, earnings and growth of the franchised Business or that of the ENGEL & VÖLKERS System, or the viability of the business opportunity being offered under this Agreement.
26.13.5 Before executing this Agreement, Franchisee has had the opportunity to contact all of Franchisor's existing franchisees.
26.13.6 Franchisee has received from Franchisor a copy of Franchisor's franchise disclosure document, together with a copy of all proposed agreements relating to the sale of the franchise, at least fourteen (14) calendar days before the execution of this Agreement or at least fourteen (14) calendar days before the payment by Franchisee to Franchisor any consideration in connection with the sale or proposed sale of the franchise granted by this Agreement.
26.13.7 Franchisee understands that the franchise relationship is an arms' length, commercial business relationship in which each party acts in its own interest.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the franchisee must acknowledge that the statements made are true, correct, and binding as of the date the Franchise Agreement is signed. This acknowledgement covers several key areas.
Specifically, the franchisee confirms they have conducted an independent investigation of the business opportunity, made no misrepresentations to obtain the agreement, and are aware that other franchisees may have different agreements. The franchisee also acknowledges that Engel & Volkers has not made any guarantees regarding income, earnings, or the viability of the business. Furthermore, the franchisee confirms they had the opportunity to contact existing franchisees and received the Franchise Disclosure Document at least 14 days before signing the agreement.
This acknowledgement is a standard practice in franchising, intended to ensure that the franchisee enters the agreement with a clear understanding of the business and the terms of the franchise relationship. It also protects Engel & Volkers from potential claims of misrepresentation or unrealistic expectations. The franchisee's representations and warranties within the agreement remain in effect even after the agreement terminates or expires.