What specific right did EVCS, LLC claim was breached by Engel & Volkers in relation to other franchisees?

EVCS, LLC and Amie Streater v. Engel & Völkers Americas, Inc., Curtin Stinson, Luxury Tucson, Inc., Turner Associates, LLC, and IRE Inc., Case No. 2023CV32068 In the District Court, County of El Paso, State of Colorado. On October 26, 2023 our franchisee in Colorado Springs, Colorado, EVCS, LLC ("EVCS"), and its owner Amie Streater, filed a complaint against us and the above-named co-defendants. Plaintiffs' amended complaint ("complaint") asserted causes of action against us for breach of the franchise agreement and the implied covenant of good faith and fair dealing by failing to stop alleged encroachments by certain other franchisees into the protected territory of EVCS. The complaint also alleges that we are liable to EVCS for damages resulting from breaches of EVCS's alleged "third party beneficiary" rights in the franchise agreements we have with those other franchisees. The complaint further alleges a claim for promissory estoppel, claiming that we breached a purported promise to make EVCS aware if anyone else wanted to submit an application for a franchise in Castle Rock or Castle Pines, Colorado and to allow EVCS to submit its own application. Finally, the plaintiffs seek a declaratory judgment that EVCS can properly declare its franchise agreement terminated or rescinded and receive a return of its investment or, alternatively, an injunction requiring us to enforce provisions in franchise agreements with certain other franchisees to prevent encroachment on EVCS's protected area, and/or money damages in an unspecified amount to be proved at trial. We filed a motion to dismiss the case in January 2024. On March 12, 2024, the Court granted our motion to dismiss in part, dismissing plaintiffs' claims against us for breach of the implied covenant of good faith and fair dealing, third party beneficiary, and promissory estoppel. However,

Source: Item 3 — LITIGATION (FDD pages 17–21)