Under what condition does the California Amendment to the Engel & Volkers Franchise Agreement apply?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
CALIFORNIA AMENDMENT TO ENGEL & VÖLKERS FRANCHISE AGREEMENT
This Amendment pertains to franchises sold in the State of California that are subject to the California Franchise Investment Law (the "Act") and is for the purpose of complying with California statutes and regulations. Signing this Amendment where the jurisdictional requirements of the Act are not met does not subject the parties to the provisions of the Act. 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
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the California Amendment to the Engel & Volkers Franchise Agreement applies to franchises sold in the State of California that are subject to the California Franchise Investment Law (the "Act"). The amendment is for the purpose of complying with California statutes and regulations.
However, the amendment also states that signing it where the jurisdictional requirements of the Act are not met does not subject the parties to the provisions of the Act. This means that if a franchise is sold in California but doesn't meet the specific legal requirements to be covered by the California Franchise Investment Law, then signing the amendment doesn't automatically make the franchise subject to that law.
This condition is important for prospective franchisees in California to understand, as it clarifies when the additional protections and requirements of California franchise law will apply to their franchise agreement with Engel & Volkers. Franchisees should consult with a legal professional to determine whether their specific situation meets the jurisdictional requirements of the California Franchise Investment Law.