Is the Development Services Consulting Fee a fixed amount for Engel & Volkers franchisees?
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) |
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 not a fixed amount. The FDD specifies that this fee "varies." This means the amount an Engel & Volkers franchisee pays for this consulting service will depend on specific factors determined by Engel & Volkers.
Specifically, 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. The franchisee must report the Gross Revenues received from that Development Services Project to Engel & Volkers and pay the Development Services Consulting Fee upon receipt of an invoice.
Prospective Engel & Volkers franchisees should inquire about the typical range and calculation method for the Development Services Consulting Fee to fully understand the potential costs associated with this service. Understanding the factors that influence the fee can help franchisees budget accurately and assess the profitability of development service projects.