What happens to the Engel & Volkers franchise if execution is levied against the franchisee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
execution is levied against Franchisee, the franchised Business, any affiliate or Guarantor thereof and/or the property of any of the foregoing;
- 20.3 Termination by Franchisor Without Opportunity to Cure: Franchisee shall be deemed to be in default under this Agreement, and Franchisor may, at its option, terminate this Agreement and all rights granted herein effective immediately or reduce or eliminate the Protected Area by written notice to Franchisee, without giving Franchisee an opportunity to cure the default, if Franchisee either:
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, if execution is levied against the Engel & Volkers franchisee, the franchisor can terminate the Franchise Agreement without providing an opportunity to cure the default. This means Engel & Volkers has the right to immediately terminate the agreement if a legal judgment is enforced against the franchisee, the franchised business, any affiliate, or guarantor, or their property.
This provision protects Engel & Volkers from potential financial or legal liabilities arising from the franchisee's financial instability or legal issues. It also allows Engel & Volkers to maintain the integrity and reputation of the brand by disassociating itself from a franchisee facing such difficulties. The franchisee risks losing their franchise and all associated rights and investments without any chance to rectify the situation.
For a prospective Engel & Volkers franchisee, this highlights the importance of maintaining sound financial standing and adhering to all legal requirements. The franchisee should be aware that any financial or legal troubles that lead to execution being levied against them could result in immediate termination of their franchise agreement. This underscores the need for careful financial planning and risk management to avoid such circumstances.