Does the Engel & Volkers franchisee waive all claims related to the franchisor's refinancing, recapitalization, securitization, or leveraged buyout?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
, now or in the future, to purchase, merge, acquire, be acquired by or affiliate with an existing competitive or non-competitive franchise network, chain or any other business regardless of the location of that chain's or business' facilities, and to operate, franchise or franchise those businesses under the Trademarks or any other marks following the purchase, merger, acquisition or affiliation, regardless of the location of these businesses (which Franchisee acknowledges may be within the Protected Area).
- 2.4.3 Franchisor further reserves the right to sell itself, its assets, the Trademarks and/or the ENGEL & VÖLKERS System to a third party; go public; engage in a private placement of some or all of its securities; merge, acquire other corporations or entities, or be acquired by another corporation or entity;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the franchisor reserves the right to undertake a refinancing, recapitalization, leveraged buyout, or other economic or financial restructuring. The document does not explicitly state that the franchisee waives all claims related to these actions. However, it does state that the franchisee will make no claims against the Engel & Völkers Group or the Parent or any of their affiliates arising out of the franchisee's acquisition of the agreement or the franchisor's performance of its obligations under the agreement.
This clause could be interpreted to limit a franchisee's ability to make claims related to the franchisor's financial restructuring activities, depending on how directly those activities are linked to the franchisee's acquisition of the franchise agreement or the franchisor's obligations. It is important to note that the franchisor also reserves the right to sell itself, its assets, the Trademarks and/or the ENGEL & VÖLKERS System to a third party; go public; engage in a private placement of some or all of its securities; merge, acquire other corporations or entities, or be acquired by another corporation or entity.
Prospective franchisees should seek legal counsel to fully understand the implications of these clauses and how they might affect their rights in the event of a refinancing, recapitalization, leveraged buyout, or other economic or financial restructuring of Engel & Volkers. Understanding the scope of potential waivers and limitations on claims is crucial for assessing the risks and benefits of investing in an Engel & Volkers franchise.