To what jurisdiction does an Engel & Volkers franchisee irrevocably submit themselves for litigation purposes?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
r conflicts of law principles. If, however, any provision of this Agreement would not be enforceable under the laws of New York, and if the franchised ENGEL & VÖLKERS Business is located outside of New York and the provision would be enforceable under the laws of the state in which the franchised ENGEL & VÖLKERS Business is located, then the provision (and only that provision) will be interpreted and construed under the laws of that state. Nothing in this Agreement is intended to invoke the application of any franchise, business opportunity, antitrust, "implied covenant", unfair competition, fiduciary or any other doctrine of law of the State of New York or any other state, which would not otherwise apply. Recipient further agrees that any litigation arising out of or related to this Agreement; any breach of this Agreement; and, all relations and any and all disputes between Recipient on the one hand, and Franchisor on the other hand, whether sounding in contract, tort, or otherwise, will be instituted exclusively in a state or federal court of competent jurisdiction located in New York, NY. Recipient agrees that any dispute as to the venue for this litigation will be submitted to and resolved exclusively by a state or federal court of competent jurisdiction situated in New York, NY.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee agrees that any litigation arising from the franchise agreement will be instituted exclusively in a state or federal court of competent jurisdiction located in New York, NY. The franchisee also agrees that any dispute regarding the venue for litigation will be resolved exclusively by a state or federal court of competent jurisdiction in New York, NY.
This means that, unless an action for monies owed, injunctive or other extraordinary or equitable relief, or involving possession or disposition of, or other relief relating to, the franchised Business, the Engel & Volkers franchisee consents to having legal disputes settled in New York, regardless of where their franchise is located. This clause dictates that the franchisee waives any right to argue that New York is an improper or inconvenient venue.
This requirement could increase costs for franchisees located far from New York, as they would need to travel for court proceedings and potentially hire local counsel. Franchisees should consider this factor when evaluating the franchise opportunity, especially if they anticipate potential disputes with Engel & Volkers. It is relatively common in franchising for the venue to be the home state of the franchisor, but franchisees should be aware of the implications.