Who are the 'Released Parties' that the Engel & Volkers franchisee and owner are releasing from claims?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee [and Owner each] hereby releases and forever discharges Engel & Völkers and affiliates and their respective officers, directors, owners, principals, managers, employees, successors and assigns (collectively the "Released Parties"), from any and all claims, demands, obligations, liabilities, actions, causes of action, suits, proceedings, controversies, disputes, agreements, promises, allegations, costs and expenses, at law or in equity, of every nature, character or description whatsoever, whether known or unknown, suspected or unsuspected or anticipated or unanticipated, which Franchisee [or Owner] ever had, now has, or may, shall or can hereafter have or acquire (collectively referred to as "Claims"). This Release includes, but is not limited to, all Claims arising out of, concerning, pertaining to or connected with the Franchise Agreement, any other agreement, tort, statutory violation, representation, nondisclosure, act, omission to act, fact, matter or thing whatsoever, occurring as of or prior to the date of this Release, so that after the date of this Release, [neither] Franchisee [nor Owner] shall have any Claim of any kind or nature whatsoever against the Released Parties, directly or indirectly, or by reason of any matter, cause, action, transaction or thing whatsoever done, said or omitted to have been done or said at any time prior to the date of this Release. [In Maryland, the general release provisions shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.] [In Washington, the general release provision shall not apply to any liability under the Washington Franchise Investment Protection Act and the rules adopted thereunder.]
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the "Released Parties" that the franchisee and owner are releasing from claims include Engel & Völkers and its affiliates, along with their respective officers, directors, owners, principals, managers, employees, successors, and assigns. This release covers any and all claims, demands, obligations, liabilities, actions, causes of action, suits, proceedings, controversies, disputes, agreements, promises, allegations, costs, and expenses, whether known or unknown, suspected or unsuspected, or anticipated or unanticipated.
This broad release essentially means that the franchisee and owner agree to waive any legal recourse against Engel & Völkers and related parties for any issues arising before the date of the release. This includes claims related to the Franchise Agreement, other agreements, torts, statutory violations, representations, nondisclosures, acts, or omissions. However, there are exceptions in Maryland and Washington, where the general release provisions do not apply to liabilities under the Maryland Franchise Registration and Disclosure Law and the Washington Franchise Investment Protection Act, respectively.
For a prospective Engel & Volkers franchisee, this underscores the importance of thoroughly understanding all aspects of the franchise agreement and conducting due diligence before signing. It is crucial to seek legal counsel to fully comprehend the implications of this release and any potential claims that are being waived. Franchisees should also be aware of the specific exceptions in Maryland and Washington, if applicable, which provide some protection under state franchise laws.