What does an Engel & Volkers franchisee agree to regarding disputes over the venue for litigation?

According to the 2025 FDD, an Engel & Volkers franchisee 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 situated in New York, NY. This means that if a franchisee has a disagreement with Engel & Volkers that leads to a lawsuit, the franchisee must resolve any arguments about where the case should be heard in a New York court.

Furthermore, the franchisee waives the right to claim that New York is an improper, inconvenient, prejudicial, or otherwise inappropriate venue. This includes waiving any claim 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. In essence, the franchisee agrees not to argue that the case should be heard in their home state or any other location besides New York.

This clause is significant because it can increase the franchisee's costs and logistical challenges in case of a legal dispute, as they would need to hire local counsel and potentially travel to New York for hearings. While forum selection clauses are common in franchise agreements, prospective franchisees should carefully consider the implications of litigating disputes in a specific location that may be far from their business operations and home.