Can an Engel & Volkers franchisee sue Engel & Volkers for losses related to trademark modification?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
If for any reason now or hereafter one or more of the Trademarks can no longer be used, or if Franchisor in its sole business judgment determines to modify or discontinue any of the Trademarks, or to adopt and use one or more additional or substitute Trademarks, then
Franchisee agrees to promptly comply with any of Franchisor's directions or instructions to modify or discontinue use of any Trademark and/or adopt and use one or more additional substitute Trademarks in accordance with the prior sentence. Franchisor shall not have any obligation to reimburse Franchisee for any expenditures Franchisee makes to comply with such instructions or directions. Nor will Franchisor be liable to Franchisee for any other expenses, losses or damages sustained by Franchisee or its franchised Business as a result of any Trademark addition, modification, substitution or discontinuation. Franchisee waives any claim or any such expenses, losses or damages and covenants not to commence or join in any litigation or other proceeding against Franchisor or any of Franchisor's affiliates for any of these expenses, losses or damages. If any trademarks, service marks, tradenames, logos, or other marks that are currently or in the future may be encompassed in the definition of "Trademarks" are modified or discontinued Franchisee's rights to use such Trademarks, or any other rights to such Trademarks shall cease upon Franchisor's notice to Franchisee of the discontinuance or modification, and such trademarks, service marks, tradenames, logos, or other marks will no longer be encompassed in the definition of "Trademarks" under this Agreement with respect to Franchisee's rights thereto.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, an Engel & Volkers franchisee explicitly waives the right to sue Engel & Volkers for losses or damages sustained as a result of trademark changes. Engel & Volkers retains the right to modify or discontinue trademarks, and franchisees are obligated to comply with these changes.
Engel & Volkers will not reimburse franchisees for expenses incurred to comply with trademark modifications or be held liable for any losses experienced due to these changes. The franchisee agrees not to initiate or participate in any legal action against Engel & Volkers or its affiliates regarding these expenses, losses, or damages. This waiver covers any expenses, losses, or damages resulting from the addition, modification, substitution, or discontinuation of trademarks.
This clause protects Engel & Volkers from legal challenges related to trademark decisions, placing the financial burden of adapting to these changes on the franchisee. Prospective franchisees should carefully consider this provision, as it means they must bear the costs of rebranding or modifying their business to align with Engel & Volkers's evolving trademark strategy. This is a significant risk factor to evaluate before investing in an Engel & Volkers franchise.