If Engel & Volkers assigns the Franchise Agreement, what obligations will Engel & Volkers no longer have?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to assign all of its rights and privileges under this Agreement to any person or business entity. If Franchisor assigns this Agreement, Franchisee expressly agrees that immediately upon and following such assignment, Franchisor will no longer have any obligation - - directly, indirectly or contingently - - to perform or fulfill the duties or obligations imposed upon the "Franchisor" as defined hereunder. Instead, all such duties
and obligations will be performed solely by Franchisor's designated assignee, and Franchisee will never assert, contend or complain otherwise.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers has the right to assign all of its rights and privileges under the Franchise Agreement to any person or business entity. If Engel & Volkers assigns the Franchise Agreement, the franchisee expressly agrees that immediately upon and following such assignment, Engel & Volkers will no longer have any obligation to perform or fulfill the duties or obligations imposed upon them as the franchisor.
Instead, all such duties and obligations will be performed solely by Engel & Volkers' designated assignee. The franchisee agrees not to assert, contend, or complain otherwise, acknowledging that the assignee assumes all responsibilities of the franchisor under the agreement.
This clause is significant for prospective franchisees as it clarifies the potential for a change in the party responsible for upholding the franchisor's obligations. While Engel & Volkers retains the right to assign the agreement, franchisees need to be aware that their contractual relationship and recourse for any issues will shift to the assignee, potentially impacting the level and quality of support they receive.