Is the initial franchise fee refundable for an Engel & Volkers franchise in Washington?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. However, the FDD includes specific stipulations for franchisees in Washington state. While the standard agreement specifies a non-refundable initial franchise fee of $35,000, Washington state law provides certain protections to franchisees.
Specifically, the FDD states that no statement signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision supersedes any other term in any document executed in connection with the franchise.
Therefore, while Engel & Volkers' standard franchise agreement stipulates a non-refundable initial franchise fee, Washington state law may provide avenues for a refund or claims under certain circumstances, particularly those involving fraud or misrepresentation. Prospective franchisees in Washington should consult with legal counsel to fully understand their rights under the Washington Franchise Investment Protection Act.