Is an Engel & Volkers franchisee required to sign a general release to renew the franchise agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| ovision | 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. Termination by franchisor without cause | §§4.8 | We can terminate upon written notice to you if we lose our rights to use the Engel & Völkers System and Trademarks. |
| f. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers 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, the franchisee must sign a general release. This requirement is part of a list of conditions that also includes providing written notice, complying with the existing Franchise Agreement, signing the then-current form of the Franchise Agreement, and paying a renewal fee.
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 is unfair and unjust under North Dakota Franchise Investment Law. As a result, the requirement to sign a general release upon renewal is specifically deleted for Franchise Agreements issued in North Dakota.
Therefore, prospective Engel & Volkers franchisees should be aware that the requirement to sign a general release upon renewal depends on the state in which the franchise is located. Franchisees outside of North Dakota may be required to sign a general release, while those in North Dakota will not be subject to this requirement.