Where must litigation arising from the Engel & Volkers agreement be instituted?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Recipient hereby waives and covenants never to assert or claim that said venue is for any reason improper, inconvenient, prejudicial or otherwise inappropriate (including, without limitation, any claim under the judicial doctrine of forum non conveniens).
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, any litigation arising from the franchise agreement must be instituted in New York, NY. Specifically, such litigation must occur in a state or federal court of competent jurisdiction located in New York, NY. This applies to any breach of the agreement, and all relations and disputes between the franchisee and Engel & Volkers, regardless of whether the issue involves contract, tort, or other legal matters.
Furthermore, the franchisee 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. The franchisee also waives any claim that this venue is improper, inconvenient, prejudicial, or inappropriate, including any claims under the judicial doctrine of forum non conveniens.
This requirement means that an Engel & Volkers franchisee, regardless of where their franchise is located, must be prepared to litigate any disputes with the franchisor in New York. This could increase the cost and complexity of resolving legal issues, as the franchisee would need to hire legal representation familiar with New York law and potentially travel to New York for court proceedings. This is a fairly common clause in franchise agreements, as it allows the franchisor to manage legal disputes in a location convenient for them.