factual

What does an Engel & Volkers franchisee waive regarding the venue designated for litigation?

Engel_Volkers Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee hereby waives and covenants never to assert or claim that the venue designated for litigation by this Agreement is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including 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' 2025 Franchise Disclosure Document, franchisees waive the right to claim that the designated litigation venue is improper, inconvenient, prejudicial, or inappropriate. This includes waiving claims under the judicial doctrine of "forum non conveniens," which allows a court to dismiss a case if another court or location is more appropriate or convenient.

This waiver means that Engel & Volkers franchisees agree to resolve disputes in the venue specified by the franchise agreement, likely New York, and cannot argue for a change of venue based on inconvenience or other factors. However, Engel & Volkers retains the right to bring actions for monies owed, injunctive relief, or relating to the franchised business in any court with jurisdiction.

This clause has significant implications for prospective franchisees. It limits their ability to litigate in a location that might be more favorable or convenient for them. Franchisees should consider the potential costs and logistical challenges of litigating in the specified venue, especially if it is far from their business location. It is a fairly common practice in franchising for the franchisor to designate a specific venue for dispute resolution, often their home state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.