What state's laws govern the interpretation of the Engel & Volkers Release?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the Release shall be governed, construed, and interpreted in accordance with the substantive laws of the state where the franchised business and the residential real estate brokerage is located. This means that the specific state law applicable to the interpretation of the Release depends on the physical location of the Engel & Volkers franchise.

For a prospective franchisee, this clause is important because it determines which state's legal principles will be used to resolve any disputes related to the Release. The laws of different states can vary significantly, potentially affecting the outcome of a legal challenge. Franchisees should familiarize themselves with the laws of the state in which their franchise operates to understand their rights and obligations under the Release.

It is also important to note that in Maryland and Washington, the general release provisions do not apply to any liability under the Maryland Franchise Registration and Disclosure Law or the Washington Franchise Investment Protection Act, respectively. This means that franchisees in these states retain certain rights and protections under their state's franchise laws, regardless of the general release. Franchisees should consult with a legal professional to fully understand the implications of these provisions and how they apply to their specific circumstances.