Is an Engel & Volkers franchisee required to sign a general release to renew their franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
wing tables list important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Franchise Disclosure Document.**
FRANCHISE AGREEMENT
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise | §19.1 | 10 years |
| term | ||
| b. Renewal or extension of | §§19.2, 19.3 | 1 period of 10 years |
| the term | ||
| c. Requirements for franchisee to renew or extend | §§19.2, 19.3 | Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
| d. Termination by | §20.1 | You may not terminate or cancel the Franchise |
| franchisee | Agreement. This provision is subject to state law. | |
| e. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, generally, a franchisee is required to sign a general release to renew their franchise agreement. Specifically, Item 17(c) states that to renew the franchise, a franchisee must comply with all provisions of the Franchise Agreement, sign the then-current form of the Franchise Agreement, and sign a general release. They must also pay a renewal fee and serve written notice on Engel & Volkers at least 6 months before the expiration of the current term.
However, there is an exception to this general rule for franchisees in North Dakota. The FDD states that North Dakota has determined that requiring a franchisee to sign a general release upon renewal of the franchise agreement is unfair, unjust, and inequitable. Therefore, for franchises issued in North Dakota, all references to the franchisee signing a general release upon renewal of the Franchise Agreement in Item 17(c) of the Franchise Disclosure Document are deleted.
This means that if you are considering an Engel & Volkers franchise, whether you will be required to sign a general release upon renewal depends on the state in which you are franchising. In most states, you will be required to sign a general release, but in North Dakota, this requirement is waived. Prospective franchisees should carefully review the state-specific addenda to the Franchise Disclosure Document to understand the specific requirements for their state.