Does signing the Engel & Volkers Multi-State Amendment automatically subject the parties to the provisions of the NASAA Statement of Policy if applicable jurisdictional requirements are not met?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Engel & Volkers' 2025 Franchise Disclosure Document, signing the Multi-State Amendment does not automatically subject the parties to the provisions of the NASAA Statement of Policy (SOP) if the applicable jurisdictional requirements are not met. This amendment is specifically designed for franchises sold in states that have adopted the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements. The purpose of the amendment is to ensure compliance with the statutes and regulations of those states.
This means that if a franchisee signs the Multi-State Amendment but does not meet the jurisdictional requirements for the SOP to apply, the provisions of the SOP will not be enforced. This provides a level of protection for both Engel & Volkers and the franchisee, ensuring that they are only bound by the SOP when it is legally applicable. The amendment clarifies that the franchise agreement is modified to include language that protects the franchisee's rights under applicable state franchise laws, preventing waivers of claims or disclaimers of reliance on statements made by the franchisor.
For a prospective Engel & Volkers franchisee, this is a beneficial provision. It ensures that they are not inadvertently subjected to regulations that do not apply to their specific situation. It also highlights Engel & Volkers' commitment to complying with state-specific franchise laws and regulations, which can provide reassurance to franchisees operating in different states with varying legal requirements.