Upon notice from Engel & Volkers, will a franchisee's rights to use a modified trademark cease?

According to the 2025 Engel & Volkers FDD, if any trademarks are modified or discontinued, the franchisee's rights to use such trademarks will cease immediately upon notification from Engel & Volkers. This includes any trademarks, service marks, tradenames, logos, or other marks encompassed in the definition of "Trademarks." After the notice, these marks will no longer be covered under the franchise agreement concerning the franchisee's rights.

This provision means that Engel & Volkers has the right to change its trademarks at any time, and franchisees must immediately comply with these changes. Franchisees are responsible for any costs associated with updating signage, marketing materials, and other branded items to reflect the new trademarks. Engel & Volkers is not obligated to reimburse franchisees for these expenses, nor are they liable for any losses or damages the franchisee incurs as a result of the trademark changes.

This clause protects Engel & Volkers's brand identity and allows them to adapt their trademarks as needed. However, it places a financial burden and operational risk on the franchisee, who must be prepared to update their branding quickly and at their own expense. Franchisees also waive any right to sue Engel & Volkers for losses incurred due to these changes, highlighting the importance of understanding and accepting this risk before investing in the franchise.