To which section of the Engel & Volkers Franchise Agreement is the statement 'Franchisee may terminate this Agreement upon any grounds available at law' added?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
MULTI-STATE AMENDMENT TO ENGEL & VÖLKERS FRANCHISE AGREEMENT (FOR THE FOLLOWING STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI)
This Amendment pertains to franchises sold in the states that have adopted as law the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements (the "SOP") and is for the purpose of complying with the statutes and regulations of such states. Signing this Amendment where the SOP, because applicable jurisdictional requirements are not met, does not subject the parties to the provisions of the SOP. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended to include the following:
Franchisor and Franchisee hereby agree that the Franchise Agreement dated
, 20, will be amended as follows: 1. The following language is added immediately before the signature block of the Franchise Agreement: "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." Amendment as of the date set forth above. IN WITNESS WHEREOF, Franchisor and Franchisee have duly executed and delivered this ENGEL & VÖLKERS AMERICAS, INC. Its: Its: Its:
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, a Multi-State Amendment to the Engel & Volkers Franchise Agreement addresses franchisee rights in certain states. This amendment, applicable in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, modifies the franchise agreement to protect franchisees. Specifically, it ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including claims of fraud in the inducement.
Furthermore, the amendment prevents franchisees from disclaiming reliance on statements made by Engel & Volkers or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement. The amendment is designed to comply with statutes and regulations in states that have adopted the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements (SOP).
For a prospective Engel & Volkers franchisee, this multi-state amendment offers additional protection by preventing unintentional waivers of legal rights or disclaimers of reliance on franchisor statements. This ensures that franchisees in the specified states retain their ability to pursue legal claims related to the franchise agreement, even if they have signed documents that might otherwise limit those rights. This amendment adds security for franchisees by ensuring they are not unknowingly relinquishing legal protections afforded by state franchise laws.