Under what conditions can an Engel & Volkers franchisee NOT terminate or cancel the franchise agreement?

According to Engel & Volkers's 2025 Franchise Disclosure Document, a franchisee does not have the option to terminate or cancel the franchise agreement. This means that once the agreement is signed, the franchisee is bound by its terms for the duration of the agreement, unless Engel & Volkers chooses to terminate it. This is a significant point for potential franchisees to consider, as it removes the flexibility to exit the agreement early if the business does not perform as expected or if personal circumstances change.

This lack of termination option places a greater emphasis on due diligence before signing the franchise agreement. Prospective Engel & Volkers franchisees should carefully evaluate the risks and potential rewards of the business, as well as their own financial and personal capacity to fulfill the obligations of the agreement. They should also seek legal and financial advice to fully understand the implications of this clause.

While the franchisee cannot unilaterally terminate the agreement, there are conditions under which Engel & Volkers can terminate the agreement, such as the franchisee being adjudicated bankrupt or insolvent. Engel & Volkers may also terminate the agreement if the franchisee commits the same act of default again within six months of curing a previous default, or interferes with Engel & Volkers' relationships with other franchisees or suppliers. These termination rights for Engel & Volkers provide a mechanism for the brand to protect its interests and maintain standards across the franchise system.