What is the annual fee range for the Commercial Designation for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Commerical Designation Annual Fee | $5,000 - $6,000 per year (depending on obtaining a Commercial Designation) | Upon receipt of invoice | The Commercial Designation is an optional program for qualified franchisees. (See Note 13) |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the annual fee for the Commercial Designation ranges from $5,000 to $6,000 per year, depending on whether the Residential Real Estate Brokerage already holds a Development Services Designation. If the brokerage has a Development Services Designation, the annual fee is $5,000. If not, the annual fee is $6,000. This fee covers a 12-month period and includes one franchisee principal (License Partner) and up to four additional designees.
For an Engel & Volkers franchisee, this means that adding a Commercial Designation to their existing services will incur an additional annual cost. The lower fee applies only if the franchisee already has the Development Services Designation, incentivizing franchisees to adopt multiple designations. If the franchisee wants more than five people to take advantage of the Commercial Designation, they will have to pay an additional fee of $325 per additional designee per 12-month period.
It's important to note that the Commercial Designation is an optional program for qualified franchisees, meaning not all franchisees will be eligible or may choose to participate. Engel & Volkers also retains the right to amend these fees or discontinue the Commercial Designation program altogether, so these costs are subject to change. Prospective franchisees should consider these potential changes when evaluating the financial implications of adding the Commercial Designation.