Regarding the Engel & Volkers franchise agreement, what does the undersigned waive when executing the guarantee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
rther understands and agrees
that Recipient's obligations hereunder may not be assigned by Recipient without the prior written consent of Franchisor.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day, month, and year first above written.
| Recipient: | ACKNOWLEDGED BY FRANCHISOR: |
|---|---|
| Signature: | ENGEL & VÖLKERS AMERICAS, INC. |
| Print Name: | |
| Position with Franchisee: | By: |
| Date of signature: | Title: |
| Home address: | Date of signature: |
| By: Title: Date of signature: |
Appendix 4
PRINCIPAL'S GUARANTEE AND ASSUMPTION OF OBLIGATIONS
PRINCIPAL'S GUARANTEE AND ASSUMPTION OF OBLIGATIONS
| 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: |
- (i) acceptance and notice of acceptance by Franchisor of the foregoing undertakings;
- (ii) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed;
- (iii) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed;
- (iv) any right the undersigned may have to require that an action be brought against Franchisee or any other person as a condition of liability;
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, when executing the guarantee, the undersigned waives certain rights. The document states that the undersigned guarantees the franchisee's obligations to Engel & Volkers and agrees to be personally bound by the franchise documents applicable to the principals of the franchisee. The liability of each person signing the guarantee is joint, several, and primary as sureties.
Specifically, the undersigned is agreeing to ensure the franchisee punctually pays and performs every undertaking, agreement, and covenant outlined in the Franchise Agreement and any related documents. This includes being personally liable for any breaches of the provisions in the Franchise Documents applicable to the franchisee's principals. The guarantee remains in effect for the term of the Franchise Agreement and beyond, as specified in the agreement.
Furthermore, the document indicates that the obligations of the undersigned are not affected even if the Franchise Agreement is amended, compromised, released, or altered by Engel & Volkers and the franchisee, without notice to the undersigned. The guarantee remains continuing, absolute, unconditional, and irrevocable, regardless of any waiver, extension of time, or other indulgence granted by Engel & Volkers. This ensures that Engel & Volkers can assign the guarantee without reducing or modifying the liability of the undersigned.