Where must litigation related to the Engel & Volkers franchise 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, breach of the agreement, or any disputes between the franchisee and Engel & Volkers must be instituted exclusively in a state or federal court of competent jurisdiction located in New York, NY. This means that regardless of where the Engel & Volkers franchise is located, the franchisee must travel to New York, NY to resolve any legal issues with the franchisor.
The FDD also states that the franchisee 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. The franchisee waives the right to claim that New York, NY is an improper or inconvenient venue. This clause is common in franchise agreements, as it provides the franchisor with a consistent legal environment.
This requirement could create additional expenses for Engel & Volkers franchisees in the form of travel, legal representation, and other associated costs if a dispute arises. Prospective franchisees should consider this factor when evaluating the Engel & Volkers franchise opportunity, as it could significantly increase the financial burden of resolving legal issues with the franchisor.