What is the intent of the waiver of rights within the Engel & Volkers Release agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ement, any other agreement, tort, statutory violation, representation, nondisclosure, act, omission to act, fact, matter or thing whatsoever, occurring as of or prior to the date of this Release, so that after the date of this Release, [neither] Franchisee [nor Owner] shall have any Claim of any kind or nature whatsoever against the Released Parties, directly or indirectly, or by reason of any matter, cause, action, transaction or thing whatsoever done, said or omitted to have been done or said at any time prior to the date of this Release. [In Maryland, the general release provisions shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.] [In Washington, the general release provision shall not apply to any liability under the Washington Franchise Investment Protection Act and the rules adopted thereunder.]
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- Waiver of Rights. This Release is intended by Franchisee [and Owner] to be a full and unconditional general release, as that phrase is used and commonly interpreted, and to constitute a full, unconditional and final accord and satisfaction, extending to all Claims of any nature, whetheror not known, expected or anticipated to exist in favor of Franchisee [or Owner] against the Released Parties regardless of whether any unknown, unsuspected or unanticipated Claim would materially
**affect settlement and compromise of any matter mentioned herein.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the waiver of rights within the release agreement is intended to be a comprehensive and unconditional general release. This extends to all claims, whether known, expected, or unanticipated, that the franchisee or owner may have against the released parties. The aim is to achieve a full, unconditional, and final resolution, covering all possible claims regardless of whether they are currently known or might arise in the future.
The franchisee acknowledges that additional claims or facts may emerge later that differ from what is currently known. Despite this possibility, the franchisee intends to fully settle and release all matters, regardless of any later discoveries. This waiver is considered an essential and integral part of the release agreement, ensuring that Engel & Volkers is protected from future legal actions related to the franchise agreement or any other matter occurring before the release date.
However, there are exceptions to this general release. In Maryland, the release does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Similarly, in Washington, it does not cover liabilities under the Washington Franchise Investment Protection Act and its associated rules. This means that franchisees in these states retain certain rights and protections under their respective franchise laws, despite signing the general release.
This type of release and waiver is common in franchise agreements to provide franchisors with legal protection and clarity regarding past and potential future liabilities. Prospective Engel & Volkers franchisees should carefully review the release agreement and understand the implications of waiving their rights, especially considering the specific exceptions in Maryland and Washington. It is advisable to seek legal counsel to fully understand the scope and impact of the release before signing.