Does Engel & Volkers require franchisees to acknowledge that they have made no misrepresentations to obtain the franchise agreement?

According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees must acknowledge that they have made no misrepresentations to obtain the franchise agreement. Specifically, the franchisee represents that, as an inducement for Engel & Volkers to enter into the agreement, they have not made any misrepresentations. This acknowledgement is part of a broader set of representations and warranties the franchisee makes upon signing the agreement.

This requirement is a standard practice in franchising, designed to protect the franchisor from potential legal challenges based on claims of fraudulent inducement. By acknowledging they have not misrepresented any information, the franchisee is prevented from later claiming they were misled into signing the agreement. This clause is binding on the franchisee from the date of signing the agreement.

In addition to confirming no misrepresentations were made, Engel & Volkers also requires franchisees to acknowledge they conducted an independent investigation of the business opportunity, had the opportunity to contact existing franchisees, and received the Franchise Disclosure Document at least 14 days before signing the agreement. These acknowledgements collectively aim to ensure the franchisee entered the agreement with full knowledge and understanding of the business and its associated risks.