Florida franchise claims E&V tried to ‘destroy’ its operations
Engel & Völkers Florida, which operated dozens of shops in the state, has sued E&V Americas over the early termination of its master franchise agreement.
A dispute over a master franchise agreement has led to a breakup — and litigation — between Engel & Völkers Americas (EVA) and one of its major Florida franchises.
'Bad faith conduct': Engel & Völkers Florida (EVFL) — which comprises around 40 offices in the state — filed a lawsuit against EVA in December 2025, claiming breach of contractual obligations and alleging that the franchisor had waged a "deliberate campaign of bad faith conduct designed to devalue and destroy" the Florida franchise, according to the original complaint.
EVA revoked EVFL's franchise agreement in February, with the official termination taking effect on April 9. The agreement had previously been scheduled to expire at the end of 2026.
An amended complaint filed in March alleges that the MFA termination, which occurred after EVFL filed its lawsuit, was retaliatory.
EVFL, which is operated by Timo Khammash and Oliver Tonn, is seeking more than $136 million in damages and lost future profits. The case is proceeding in the U.S. District Court for the Southern District of New York.
What the lawsuit alleges: The problems began around 2021, shortly after EVA was acquired by the London-based private equity firm Permira, according to EVFL's original complaint.
Following that acquisition, EVA allegedly "pursued a scheme to devalue EVFL with the obvious objective of either acquiring EVFL at a distressed price or forcing EVFL out of the system entirely so that Permira may seize the significant royalty stream associated with EVFL's business for itself," the filing states.
EVFL claimed part of that plan involved unreasonable contract terms, including a 2021 Master Franchise Agreement (MFA) that imposed around 20% annual revenue growth targets — goals that were unrealistic and designed to trigger default, according to the complaint.
EVFL has also alleged that EVA required franchisees to use a new tech platform that was defective — and ignored repeated complaints about the system.
Who's at fault? In March, EVA filed a motion to dismiss the case, arguing that EVFL's claims are legally insufficient and that the franchise is trying to shift blame for its own business failures.
EVFL, which was the last master franchisee in EVA's U.S. network, responded to the motion by arguing that it has met the legal pleading standard and that the issues should be resolved through litigation.
As for the Florida franchise's shops and roughly 700 agents — who are, for now, expected to remain under the EVA umbrella — the feud shouldn't have much immediate impact.
Real Estate News has reached out to EVA for comment and will update this story with any response.