What does the Virginia Amendment to the Engel & Volkers Franchise Agreement state regarding the cancellation of a franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA AMENDMENT TO ENGEL & VÖLKERS FRANCHISE AGREEMENT
This Amendment pertains to franchises sold in the State of Virginia that are subject to the Virginia Retail Franchising Act (the "Act") and is for the purpose of complying with Virginia 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
follows: contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as be amended as follows: Franchisor and Franchisee hereby agree that the Franchise Agreement dated, 20, will Section 20 of the Franchise Agreement is amended by adding the following language: reasonable cause." "§13.1-564 of the Virginia Retail Franchising Act provides that it is unlawful for a franchisor to cancel a franchise without Amendment as of the date set forth above. IN WITNESS WHEREOF, Franchisor and Franchisee have duly executed and delivered this ENGEL & VÖLKERS AMERICAS, INC. Its: Its: Its:
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Virginia Amendment modifies the standard franchise agreement to comply with the Virginia Retail Franchising Act. Specifically, it adds language to Section 20 of the agreement, referencing §13.1-564 of the Act. This section makes it unlawful for Engel & Volkers to cancel a franchise without reasonable cause.
For a prospective Engel & Volkers franchisee in Virginia, this amendment provides additional protection against arbitrary or unfair termination of their franchise agreement. It ensures that Engel & Volkers must have a legitimate and justifiable reason, considered 'reasonable cause' under Virginia law, before cancelling the franchise. This aligns with the intent of the Virginia Retail Franchising Act to protect franchisees from potentially abusive practices by franchisors.
This type of amendment is common in franchise agreements to address specific state laws that provide additional protections to franchisees. Franchise laws vary by state, and franchisors often include state-specific amendments to ensure compliance. The inclusion of this amendment demonstrates Engel & Volkers' intent to comply with Virginia law and provides a level of assurance to franchisees operating in Virginia.