Can an Engel & Volkers franchisee claim that the designated venue is prejudicial?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Recipient hereby waives and covenants never to assert or claim that said venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, without limitation, any claim under the judicial doctrine of forum non conveniens).
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee explicitly waives the right to claim that the designated venue for litigation is prejudicial. The FDD states that any litigation arising from the franchise agreement or the relationship between the franchisee and Engel & Volkers must be instituted in a state or federal court with jurisdiction in New York, NY.
Engel & Volkers franchisees agree that any dispute regarding the venue will be resolved exclusively by a court in New York, NY. The franchisee waives the right to argue that this venue is improper, inconvenient, prejudicial, or otherwise inappropriate. This includes waiving any claims 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.
This clause means that Engel & Volkers franchisees are obligated to litigate any disputes with the franchisor in New York, regardless of where their franchise is located or whether they believe New York is a fair or convenient location. This could potentially increase litigation costs for franchisees located outside of New York, as they would need to travel and potentially hire local counsel in New York. Prospective franchisees should carefully consider this venue clause and its potential implications before investing in an Engel & Volkers franchise.