Can an Engel & Volkers franchisee terminate the agreement if they are unhappy with the franchise?

According to Engel & Volkers's 2025 Franchise Disclosure Document, a franchisee does not have the option to simply terminate or cancel the Franchise Agreement if they are unhappy. Section 20.1 explicitly states that "Franchisee agrees that it may not terminate or cancel this Agreement."

However, the agreement can be terminated under certain circumstances, primarily initiated by Engel & Volkers due to franchisee default. These defaults range from bankruptcy or insolvency to breaches of the agreement, such as failing to comply with laws, making misrepresentations, or defaulting on other agreements with Engel & Volkers. Some defaults are curable with a 30-day notice, allowing the franchisee to rectify the situation, while others, like certain legal violations or unauthorized use of the Engel & Volkers system, may lead to immediate termination.

There is one exception where the franchisee can terminate the agreement: if Engel & Volkers and the franchisee mutually agree in writing to terminate the agreement. This would require a negotiated settlement. Upon termination, the franchisee must immediately cease using the Engel & Volkers System, including trademarks and confidential information, and fulfill various obligations such as removing Engel & Volkers's name from their business and transferring related online assets to Engel & Volkers.