Does the Engel & Volkers franchise agreement specify that the franchisee's representations and warranties survive termination or expiration of the agreement?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the representations and warranties made by the franchisee within the franchise agreement remain in effect even after the agreement terminates or expires. This means that any statements, assurances, or guarantees the franchisee provides to Engel & Volkers are not nullified simply because the franchise relationship ends.

This survival clause has significant implications for a prospective Engel & Volkers franchisee. If any representation or warranty made by the franchisee is later found to be false or inaccurate, Engel & Volkers can pursue legal remedies against the franchisee, even after the franchise agreement has ended. These representations often cover various aspects of the franchisee's business operations, financial status, and compliance with legal requirements.

For example, if a franchisee inaccurately represents their financial solvency or compliance with local real estate regulations at the time of signing the agreement, Engel & Volkers could take action against them later, regardless of whether the franchise is still active. This clause protects Engel & Volkers from potential damages or liabilities arising from misrepresentations made by the franchisee. Therefore, it is crucial for franchisees to ensure that all representations and warranties are truthful, accurate, and complete when entering into the franchise agreement.

This type of clause is relatively standard in franchise agreements, as it provides franchisors with ongoing protection against potential misstatements or breaches of contract by franchisees. Prospective franchisees should carefully review all representations and warranties within the franchise agreement and seek legal counsel to fully understand their obligations and potential liabilities.