Under what conditions are Attorneys' Fees payable by an Engel & Volkers franchisee?
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, an Engel & Volkers franchisee is responsible for the franchisor's costs and attorney's fees under specific circumstances. The franchisee must cover these fees if Engel & Volkers incurs them during any litigation proceeding with the franchisee and Engel & Volkers prevails. Additionally, the franchisee is liable for Engel & Volkers's legal costs if Engel & Volkers has to obtain an injunction against the franchisee. The amount of these attorney's fees varies. These fees are payable to Engel & Volkers on demand.
In addition to direct litigation, an Engel & Volkers franchisee is also responsible for indemnifying Engel & Volkers against all costs and expenses, including attorney's fees, arising out of claims by third parties. This indemnification applies to claims resulting from the franchisee's actions or omissions. These fees are payable to Engel & Volkers, its affiliates, and their respective directors, officers, employees, or agents on demand.
This arrangement is fairly standard in franchising. It means that if an Engel & Volkers franchisee is in breach of the franchise agreement, or acts in a way that causes a third party to sue Engel & Volkers, the franchisee will be responsible for covering Engel & Volkers's legal costs. This protects Engel & Volkers from financial losses due to a franchisee's misconduct or legal disputes and encourages franchisees to adhere to the franchise agreement and operate responsibly.