What is the name of the Settlement Agreement that Engel & Volkers entered into?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
eriod of December 27, 2019 until present in an unspecified amount to be proved at trial. Although we vigorously dispute Plaintiffs' allegations, we agreed to settle the case on June 18, 2024 and entered into a settlement agreement dated July 12, 2024 ("Settlement Agreement") that includes a total monetary settlement amount of $6.9 million to be paid by us into the qualified settlement fund. The Settlement Agreement received final approval from the court on November 4, 2024. Objectors to the settlement filed four separate appeals: Don Gibson, et al v. Monty March, 24-3478 (8th Cir.); Don Gibson, et al v. Robert Friedman, et al, 24-3481 (8th Cir.); Don Gibson, et al v. James Mullis, 24-3473 (8th Cir.); and Don Gibson, et al v. Benny Cheatham, et al, 24-3564 (8th Cir.). The Settlement Agreement will become effective upon the resolution of those appeals affir
Source: Item 3 — LITIGATION (FDD pages 17–21)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the brand was party to multiple settlement agreements. One settlement agreement, dated July 12, 2024, is referred to as "Settlement Agreement" and involves a monetary settlement of $6.9 million to be paid by Engel & Volkers into a qualified settlement fund. This agreement received final court approval on November 4, 2024, but its effectiveness is contingent upon the resolution of appeals affirming this approval. The objector-appellants' briefs are due on April 21, 2025.
Another settlement agreement, dated May 29, 2018, also referred to as "Settlement Agreement", involved Engel & Volkers, the plaintiffs in the action, and the plaintiffs in two other disclosed actions. Pursuant to this agreement, Engel & Volkers paid the plaintiffs a total of $125,000. All parties released claims against each other, the actions were dismissed with prejudice on June 27, 2018, and the appeals were withdrawn.
Additionally, Engel & Volkers entered into an Assurance of Discontinuance with the Washington State Office of the Attorney General on September 30, 2019, which was approved by the King County Superior Court. This agreement resolved an investigation into "no-poach" provisions in Engel & Volkers' franchise agreements. As part of the agreement, Engel & Volkers agreed not to enforce these provisions in existing U.S. agreements and to amend agreements with Washington franchisees to remove them.
Finally, on November 29, 2024, Engel & Volkers entered into a settlement agreement with Jessie Rodriguez and Cal American Homes and Realty, where all claims were settled, and Engel & Volkers paid the plaintiffs a total of $200,000. The court dismissed Engel & Volkers with prejudice from the action on January 2, 2025.