Where must litigation arising out of the confidential information agreement with Engel & Volkers 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 Engel & Völkers 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 23 — RECEIPTS (FDD pages 88–302)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, any litigation arising from or related to the Confidentiality Agreement, including breaches and disputes, must be instituted exclusively in a state or federal court with competent jurisdiction located in New York, NY. The document emphasizes that this applies to all relations and disputes between the recipient and Engel & Volkers, regardless of whether they arise in contract, tort, or otherwise.
This clause dictates that prospective franchisees who sign the Confidentiality Agreement are agreeing to resolve any legal issues related to it in the specified New York courts. This includes disputes over the interpretation, enforcement, or breach of the agreement. The recipient also agrees that any dispute regarding the venue will be resolved exclusively by a state or federal court of competent jurisdiction in New York, NY.
Furthermore, the recipient waives the right to claim that New York is an improper or inconvenient venue. This waiver includes any claims under the doctrine of forum non conveniens, which allows a court to dismiss a case if another court is better suited to hear it. This clause ensures that Engel & Volkers can litigate these matters in its preferred jurisdiction, which is likely where the company is headquartered or has significant business operations. This could potentially increase costs and logistical challenges for a franchisee located outside of New York who may need to travel and hire local counsel to handle any litigation.