Under what conditions is an Engel & Volkers franchisee not entitled to claim provision of a service?

According to Engel & Volkers' 2025 Franchise Disclosure Document, an Engel & Volkers franchisee is not entitled to set off counterclaims against payments due to the Franchisor, nor can they withhold any payment or claim rights of retention. This means a franchisee cannot reduce or delay payments owed to Engel & Volkers based on any perceived failure of Engel & Volkers to meet its obligations.

Specifically, the franchisee may not withhold, set-off, or recoup payment of any amount due based on alleged non-performance or breach of any obligations by Engel & Volkers or its affiliates under the Franchise Agreement or any other agreement. This clause protects Engel & Volkers' revenue stream by ensuring that franchisees fulfill their financial obligations regardless of any disputes over service provision.

This type of clause is relatively standard in franchise agreements. It is designed to ensure the franchisor receives consistent payments, which are essential for supporting the franchise system. However, franchisees retain the right to pursue separate legal action for any legitimate grievances they may have against Engel & Volkers. Prospective franchisees should carefully consider this clause and understand their obligations to make timely payments, even if they believe Engel & Volkers has not fully met its obligations.