If an Engel & Volkers franchisee is dissolved, what happens to the franchise agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Bankruptcy Code or any other applicable federal or state bankruptcy, insolvency, reorganization, receivership or other similar law now or hereafter in effect, or consent to the entry for an order for relief in an involuntary proceeding or to the conversion of an involuntary proceeding to a voluntary proceeding, under any such law; a bill in equity or other proceeding for the appointment of a receiver or other custodian of Franchisee, the franchised Business, or any affiliate or Guarantor of the franchised Business, or the assets of any of them, is filed and consented to by Franchisee; a receiver or other custodian (permanent or temporary) of all or part of the assets or property of Franchisee, the franchised Business and any affiliate or Guarantor of the franchised Business is appointed by any court of competent jurisdiction; proceedings for a composition with creditors under any federal or state law are instituted by or against Franchisee, the franchised Business or any affiliate or Guarantor thereof; Franchisee, any affiliate of Franchisee or any Guarantor are dissolved; execution is levied against Franchisee, the franchised Business, any affiliate or Guarantor thereof and/or the property of any of the foregoing; the property of the franchised Business is sold after levy thereon by any governmental body or agency, sheriff, marshal or other person authorized under federal, state and/or local law; or, if Franchisee is a business entity, its governing body adopts any resolution or otherwise authorizes action to approve any of the foregoing activities.
- 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' 2025 Franchise Disclosure Document, if a franchisee, any affiliate of the franchisee, or any guarantor is dissolved, it constitutes a default under the franchise agreement. In such a case, Engel & Volkers, at its option, can immediately terminate the agreement without providing an opportunity for the franchisee to remedy the default. This means the franchisee's rights to operate under the Engel & Volkers brand cease immediately upon dissolution.
Following termination due to dissolution, the franchisee must immediately cease using the Engel & Volkers system, including trademarks and confidential information. The franchisee must also remove the Engel & Volkers name from its business name and cancel any related registrations. All visual features associated with Engel & Volkers offices must be removed, and the franchisee must transfer all telephone, fax numbers, email accounts, internet domain names, and social media accounts related to the business to Engel & Volkers.
These post-termination obligations are standard in franchising to protect the brand and ensure a consistent image. The franchisee is also required to remove any references to the Engel & Volkers system from directories and cease using any products or supplies displaying the trademarks. Failure to comply with these requirements allows Engel & Volkers to take necessary actions at the franchisee's expense, including signing documents on the franchisee's behalf to discontinue the use of the Engel & Volkers name.