To whom is the Indemnification payment payable for an Engel & Volkers franchise?

According to Engel & Volkers's 2025 Franchise Disclosure Document, the indemnification payment is payable to Engel & Volkers or its affiliates, as well as their respective directors, officers, employees, or agents. This payment is required to cover costs and expenses, including attorney's fees, that arise from third-party claims resulting from the franchisee's actions or omissions.

This means that if an Engel & Volkers franchisee's actions lead to a lawsuit or claim against Engel & Volkers by a third party, the franchisee is responsible for covering the associated costs. This includes not only the direct expenses incurred but also the legal fees and other costs that Engel & Volkers may incur in defending itself. The payment could be directed to Engel & Volkers directly or to any of its related entities or individuals acting on its behalf.

This indemnification clause is a standard practice in franchising, designed to protect the franchisor from liabilities arising from the franchisee's operations. Prospective Engel & Volkers franchisees should understand that this obligation could potentially involve significant financial exposure depending on the nature and extent of any claims made against them or Engel & Volkers due to their business activities. It is advisable to maintain adequate insurance coverage and to operate the franchise in a manner that minimizes the risk of third-party claims.