Can an Engel & Volkers franchisee initiate legal proceedings for trademark infringement without the franchisor's consent?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.7 Defense of Rights: Franchisor will defend the Trademarks at its own expense unless those rights are defended by E&V Marken or Grund Genug Verlag. Franchisee must notify Franchisor of any infringements of or attacks on the Trademarks or Franchisor's associated intellectual property rights and give assistance to Franchisor as requested in any relevant legal proceedings. Assistance by Franchisee will be at the cost of Franchisor insofar as and to the extent Franchisor has given its explicit prior approval regarding such assistance by Franchisee. Franchisee will not institute legal proceedings for infringement of these Trademarks without the prior written consent of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee is not permitted to independently initiate legal proceedings for trademark infringement. Specifically, the FDD states that the franchisee must first obtain written consent from Engel & Volkers before starting any such legal action. This requirement ensures that Engel & Volkers maintains control over the defense and management of its trademarks.
This stipulation is significant for prospective franchisees because it limits their autonomy in protecting the Engel & Volkers brand. While franchisees are obligated to report any potential trademark infringements to Engel & Volkers, they cannot take independent legal action without prior approval. This ensures a unified legal strategy and protects the overall brand integrity, but it also means franchisees must rely on Engel & Volkers to act on reported infringements.
Engel & Volkers retains the right to defend its trademarks at its own expense, or those rights may be defended by E&V Marken or Grund Genug Verlag. If a franchisee provides assistance in any relevant legal proceedings, they will be reimbursed for their costs only if Engel & Volkers has given explicit prior approval for that assistance. This further emphasizes the franchisor's control over trademark-related legal matters and the franchisee's need to coordinate with Engel & Volkers on such issues.