What is the condition for paying the Development Services Consulting Fee to Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we may charge you a consulting fee as a percentage of Gross Revenues received by you from a Development Services project if we provided advisory services to one of your Development Services designees in connection with a specific Development Services project. The Development Services Consulting Fee will vary between eight percent (8%) and ten percent (10%) of Gross Revenues received by you from that Development Services project based on the level and/or kind of consulting services provided by us. You must report the Gross Revenues received from that Development Services Project to us and pay us pay the Development Services Consulting Fee upon your receipt of an invoice from us.
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the Development Services Consulting Fee is applicable if Engel & Volkers provides advisory services to one of the franchisee's Development Services designees in connection with a specific Development Services project. This fee is a percentage of the Gross Revenues received by the franchisee from that specific Development Services project. The percentage charged by Engel & Volkers varies between eight percent (8%) and ten percent (10%) of Gross Revenues, depending on the level and kind of consulting services provided.
For a prospective Engel & Volkers franchisee, this means that if they participate in the Development Services Designation program and receive consulting services from Engel & Volkers for a specific project, they will be required to pay a consulting fee. This fee is calculated as a percentage of the revenue generated from that project, so the actual amount will depend on the project's financial success and the extent of consulting provided by Engel & Volkers.
The franchisee is obligated to report the Gross Revenues received from the Development Services project to Engel & Volkers. Payment of the Development Services Consulting Fee is due upon the franchisee's receipt of an invoice from Engel & Volkers. This implies that franchisees need to maintain accurate records of project revenues and be prepared to remit the consulting fee promptly after invoicing.