Under what circumstances must an Engel & Volkers franchisee provide indemnification?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Attorneys’ Fees | Varies | On demand. | You are responsible for our costs and attorney’s fees if we incur them in any litigation proceeding with you in which we prevail or if we have to obtain an injunction against you. |
| Indemnification | You must indemnify us and other parties against all costs and expenses, including attorney’s fees, arising out of claims by third parties as a result of your actions or omissions | On demand | Payable to us or our affiliates and their respective directors, officers, employees or agents. |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees must indemnify Engel & Volkers and other related parties against all costs and expenses, including attorney's fees. This indemnification requirement is triggered by claims from third parties that arise as a result of the franchisee's actions or omissions. The payment for indemnification is due on demand and is payable to Engel & Volkers, its affiliates, and their respective directors, officers, employees, or agents.
In practical terms, this means that if a third party (such as a customer, vendor, or another business) brings a claim against Engel & Volkers due to something the franchisee did or failed to do, the franchisee is responsible for covering all associated costs. These costs can include not only the amount of the claim itself but also any legal fees or other expenses Engel & Volkers incurs in defending against the claim. This is a standard clause in many franchise agreements, designed to protect the franchisor from liabilities caused by the franchisee's operations.
For a prospective Engel & Volkers franchisee, this underscores the importance of operating the business responsibly and in compliance with all applicable laws and regulations. It also highlights the need for adequate insurance coverage to protect against potential claims. Franchisees should carefully review their insurance policies to ensure they provide sufficient coverage for potential liabilities and consult with legal and insurance professionals to understand the full scope of their indemnification obligations under the Franchise Agreement.