What state's law governs the Engel & Volkers Franchise Agreement?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| w. Choice of law | §26.1 §8.3, Appendix 2 | New York law applies. For sales of goods and services by us, New York law applies. For sales of goods and services by E&V Residential or its affiliates based in Germany, German law applies. This provision may be subject to state law. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Franchise Agreement is governed by New York law. Specifically, New York law applies to sales of goods and services by Engel & Volkers. However, for sales of goods and services by E&V Residential or its affiliates based in Germany, German law applies.
It's important to note that this choice of law may be subject to state law, meaning that certain state franchise laws could override the agreement's selection of New York law in specific situations. For example, the addendum to the Franchise Disclosure Document pursuant to the North Dakota Franchise Law states that the laws of the State of North Dakota supersede any provisions of the Franchise Agreement, the other agreements or New York law if those provisions are in conflict with North Dakota law.
This means that depending on the franchisee's location, certain provisions of the Franchise Agreement could be interpreted and enforced differently. Prospective franchisees should be aware of this and consult with legal counsel to understand how the choice of law provision and any potential conflicts with state law may affect their rights and obligations under the Franchise Agreement.