What does the Principal's Guarantee for Engel & Volkers require the undersigned to guarantee regarding the Franchisee's obligations?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchise Agreement dated _ | (the "Franchise Agreement") by and between ENGEL |
|---|---|
| & VÖLKERS AMERICAS, INC. ("Franchisor") and | ("Franchisee"), and |
| for other good and valuable consideration, each of the undersigned hereby, for themselves, their heirs, | |
| successors and assigns, jointly, individually and severally, personally, absolutely and unconditionally: | |
| (1) guarantees to Franchisor and its parent and affiliates and their successors and assigns, for the term of | |
| the Franchise Agreement and thereafter as provided in the Franchise Agreement, that Franchisee shall | |
| punctually pay and perform each and every undertaking, agreement and covenant set forth in the Franchise | |
| Agreement and any documents, agreements, instruments and promissory notes executed pursuant to or in | |
| connection with the Franchise Agreement (collectively, the "Franchise Documents"); and (2) agrees to be | |
| personally bound by, and personally liable for the breach of, each and every provision in the Franchise | |
| Documents applicable to Principals of Franchisee. If more than one person has executed this Guarantee, | |
| the term "the undersigned", as used herein, shall refer to each such person, and the liability of each of the | |
| undersigned hereunder shall be joint and several and primary as sureties. The undersigned waives: |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, if the franchisee is a business entity such as a corporation, partnership, or limited liability company, the principal owners (those owning 10% or more of the franchisee) must sign a Principal's Guarantee and Assumption of Obligations. This guarantee ensures that the franchisee will punctually pay and perform every agreement and covenant outlined in the Franchise Agreement and any related documents. The principals also agree to be personally bound by and liable for any breaches of the Franchise Documents applicable to principals of the franchisee.
This guarantee extends for the term of the Franchise Agreement and beyond, as specified in the agreement. The undersigned (the principal) provides a joint, individual, and several personal, absolute, and unconditional guarantee to Engel & Volkers, its parent company, affiliates, successors, and assigns. This means each principal is fully responsible for the franchisee's obligations. The undersigned also waives certain rights, including the need for Engel & Volkers to notify them of acceptance, demand payment, or provide notice of default.
The undersigned consents to direct and immediate liability, which is joint and several with all signatories to similar guarantees. They must render payment or performance if the franchisee fails to do so. This guarantee applies to claims against the franchisor due to the return of payments or property received from the franchisee as a preference, fraudulent transfer, or similar legal proceeding. The liability is not contingent upon Engel & Volkers pursuing remedies against the franchisee or any other person, nor is it affected by any extensions of time or credit granted to the franchisee.
Furthermore, the undersigned agrees to pay Engel & Volkers' court costs and reasonable attorney's fees for enforcing or collecting on the guarantee. The obligations of the undersigned are not affected even if the Franchise Agreement is amended or altered. This comprehensive guarantee ensures that Engel & Volkers has recourse to the principals of the franchisee to ensure compliance with the Franchise Agreement and related financial and operational obligations.