When is the Development Services Consulting Fee due for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Development Services Consulting Fee | Varies. | Upon receipt of an invoice. | (See Note 13) |
One program is the Development Services Designation. The fee for a 12 month period for a Development Services Designation is $2,500 if you apply for 1 or 2 qualifying Residential Real Estate Brokerages with up to 5 designees; $4,000 for 3 up to 5 qualifying Residential Real Estate Brokerages with up to 10 designees; and $6,000 for 6 or up to 9 Residential Real Estate Brokerages with up to 15 designees. For any additional designee per Residential Real Estate Brokerage we will charge a fee of $300 per designee. 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.
All of the fees are subject to amendment from time to time and we also reserve the right to discontinue the Development Services Designation, the Commercial Designation and other programs and designations we may develop.
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the Development Services Consulting Fee is due upon receipt of an invoice. This fee is associated with the Development Services Designation program, which is an optional program for qualified franchisees.
The amount of the Development Services Consulting Fee varies. Engel & Volkers may charge a consulting fee as a percentage of Gross Revenues received from a Development Services project if they provided advisory services to one of the franchisee's Development Services designees in connection with a specific Development Services project. The consulting fee will range between 8% and 10% of the Gross Revenues from the Development Services project, depending on the level and kind of consulting services provided by Engel & Volkers.
As an Engel & Volkers franchisee, you are required to report the Gross Revenues received from the Development Services Project to Engel & Volkers. You must then pay the Development Services Consulting Fee upon receiving an invoice from them. It is important for prospective franchisees to understand that all fees are subject to change and Engel & Volkers reserves the right to discontinue the Development Services Designation and other programs.