What does an Engel & Volkers franchisee waive regarding the designated venue for litigation?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Recipient further agrees that any litigation arising out of or related to this Agreement; any breach of this Agreement; and, all relations and any and all disputes between Recipient on the one hand, and Franchisor on the other hand, whether sounding in contract, tort, or otherwise, will be instituted exclusively in a state or federal court of competent jurisdiction located in New York, NY.
Recipient agrees that any dispute as to the venue for this litigation will be submitted to and resolved exclusively by a state or federal court of competent jurisdiction situated in New York, NY.
Recipient hereby waives and covenants never to assert or claim that said venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, without limitation, any claim under the judicial doctrine of forum non conveniens).
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, a franchisee waives the right to claim that the designated venue for litigation is improper, inconvenient, prejudicial, or otherwise inappropriate. This includes waiving claims under the judicial doctrine of 'forum non conveniens,' which allows a court to dismiss a case if there is a more appropriate venue elsewhere. This waiver is part of the agreement the franchisee enters into with Engel & Volkers.
In practical terms, this means that if a dispute arises that leads to litigation, the Engel & Volkers franchisee cannot argue that the case should be heard in a different location simply because it might be more convenient or favorable to them. The franchisee is essentially agreeing to have any legal disputes resolved in the venue specified by Engel & Volkers, which the document indicates is New York, NY.
This clause is significant because it can increase costs and logistical challenges for the franchisee if they are located far from the designated venue. It is a common practice in franchising for the franchisor to specify a venue for dispute resolution, often their home state, to ensure consistency and predictability in legal proceedings. Prospective franchisees should carefully consider this when evaluating the franchise agreement and factor in potential travel and legal costs associated with litigating in the specified venue.