Does the Engel & Volkers franchisee consent to an injunction prohibiting conduct that violates the non-compete terms?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.3.6 commits a breach of the non-competition provisions set forth in Section 16 or one of the Principals commits a breach of the Confidentiality Agreement and Covenant Not To Compete;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, a franchisee can face termination of their franchise agreement if they breach the non-competition provisions outlined in Section 16. Specifically, section 20.3.6 states that a breach of the non-competition provisions is grounds for termination. While this section does not explicitly state that the franchisee consents to an injunction, it strongly implies that Engel & Volkers can pursue legal remedies, including termination, if the franchisee violates the non-compete agreement.
This clause is significant for prospective franchisees because it highlights the importance of adhering to the non-competition terms. These terms restrict the franchisee from engaging in any competitive real estate brokerage services during the term of the agreement, both directly and indirectly, within a specified radius of their approved location.
It is important to note that the FDD excerpt does not explicitly state that the franchisee consents to an injunction as a remedy for violating the non-compete terms. However, the franchisor's ability to terminate the agreement for such a breach suggests that Engel & Volkers has strong legal recourse to protect its interests and system standards. A prospective franchisee should seek legal counsel to fully understand the implications of the non-compete agreement and the potential remedies available to Engel & Volkers in case of a breach.