When are the additional funds for the first 3 months due for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Printing and Promotional Supplies (See Note 11) | $2,500 - $7,500 | As arranged | As incurred | Independent vendors |
| Additional Funds – 3 Months (See Note ) | $20,000 -$60,000 | Cash | As incurred | Various Payees |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the additional funds for the first three months of operation are due as incurred. These funds, estimated to be between $20,000 and $60,000, are intended to cover expenses during the start-up phase of the Engel & Volkers franchise.
This means that franchisees should have these funds readily available to pay for ongoing costs as they arise during the initial three months. These costs can include, but are not limited to, operational expenses that may not be covered by generated revenues. The FDD notes that these figures are only estimates, and Engel & Volkers cannot guarantee that franchisees will not incur additional expenses during this period.
Prospective Engel & Volkers franchisees should carefully consider these requirements and review the estimated costs with a business advisor to ensure they have sufficient capital to support their franchise during the initial months of operation. It is important to note that these additional funds are separate from other initial investment costs such as the franchise fee, training fees, and expenses for furniture, equipment, and signage.