Can an Engel & Volkers franchisee terminate or cancel the Franchise Agreement?

According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees are generally not permitted to terminate or cancel the Franchise Agreement. Specifically, the FDD states, "You may not terminate or cancel the Franchise Agreement." However, this provision is subject to state law, meaning that in some states, franchisees may have rights to terminate the agreement under certain circumstances as provided by law.

An addendum to the FDD states, "You can terminate upon any grounds available by law." This statement appears to contradict the initial statement that franchisees cannot terminate the agreement. However, the addendum clarifies that this right to terminate is subject to any grounds available by law, implying that the franchisee's ability to terminate is dependent on the specific laws of their state.

Prospective Engel & Volkers franchisees should be aware that the standard Franchise Agreement appears to restrict their ability to terminate the agreement, but that state laws may provide some termination rights. It is important for franchisees to consult with an attorney to understand their rights under the laws of their specific state. Franchisees should also inquire with Engel & Volkers about any specific conditions or procedures for termination that may be permitted under state law.