Does the Engel & Volkers franchise agreement require the franchisee to represent that they have made no misrepresentations?
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
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the franchise agreement includes an acknowledgement by the franchisee that they have made no misrepresentations to induce Engel & Volkers to enter into the agreement. Specifically, the franchisee must represent that, as an inducement for Engel & Volkers to enter into the agreement, they have not made any misrepresentations in obtaining the agreement.
This provision is a standard protective measure for franchisors. It ensures that Engel & Volkers relies on accurate information when deciding to award a franchise. If a franchisee provides false or misleading information during the application process, this clause allows Engel & Volkers to hold the franchisee accountable.
For a prospective Engel & Volkers franchisee, this means being truthful and transparent throughout the franchise application and agreement process. Any false statements or omissions could have serious legal and financial consequences, potentially leading to termination of the franchise agreement. Franchisees should carefully review all information they provide to Engel & Volkers and seek legal counsel if they have any concerns about the accuracy or completeness of their disclosures.