Can an Engel & Volkers franchisee claim that the designated litigation venue is inconvenient?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
preted and construed under the laws of that state. Nothing in this Agreement is intended to invoke the application of any franchise, business opportunity, antitrust, "implied covenant", unfair competition, fiduciary or any other doctrine of law of the State of New York or any other state, which would not otherwise apply. Recipient further agrees that any litigation arising out of or related to this Agreement; any breach of this Agreement; and, all relations and any and all disputes between Recipient on the one hand, and Franchisor on the other hand, whether sounding in contract, tort, or otherwise, will be instituted exclusively in a state or federal court of competent jurisdiction located in New York, NY. Recipient agrees that any dispute as to the venue for this litigation will be submitted to and resolved exclusively by a state or federal court of competent jurisdiction situated in New York, NY.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees explicitly waive the right to claim that the designated litigation venue is inconvenient. The franchise agreement specifies that any litigation must be instituted in a state or federal court of competent jurisdiction located in New York, NY. Franchisees agree that any disputes regarding the venue will be resolved exclusively by these courts.
This means that an Engel & Volkers franchisee, regardless of where their franchise is located, must travel to New York for any legal disputes with the franchisor. They cannot argue that New York is an inconvenient or inappropriate venue, even if their business is located far from New York. This clause is a significant commitment, as it can increase the costs and logistical challenges of resolving disputes for franchisees located outside of New York.
This type of clause is relatively common in franchise agreements, as it allows the franchisor to manage legal disputes in a location familiar and convenient for them. However, prospective Engel & Volkers franchisees should carefully consider the implications of this venue requirement, especially if they are located far from New York. They should factor in potential travel costs, legal representation in New York, and the general inconvenience of litigating in a distant location when evaluating the franchise opportunity.