What factors determine the initial franchise fee for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
of the additional costs that may be incurred when opening a start-up Engel & Völkers Residential Real Estate Brokerage.
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- The Initial Franchise Fee is at minimum $35,000, but could be higher based on the size of your protected area, the number of locations, the market potential, the population base, the character of its residential properties and the total market turn-over. An additional Initial Franchise Fee of $5,000 Initial Franchise Fee will apply if we grant you the right to open and operate an additional physcial loation within your Protected Area. An additional one-time fee of $2,500 will apply for any Limited Purpose Location we may permit you to open. The Initial Franchise Fee and the Limited Puprose Location Fee must be paid by cashier's check, certified bank check or any other method as we require i
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the initial franchise fee is a minimum of $35,000. However, this fee can increase based on several factors related to the territory and potential of the franchise. These factors include the size of the protected area granted to the franchisee, the number of locations the franchisee intends to operate, and the overall market potential within that area. The initial fee is also impacted by the population base, the characteristics of residential properties in the area, and the total market turnover.
Engel & Volkers also charges additional fees for franchisees who wish to expand their operations. Specifically, an additional initial franchise fee of $5,000 is required if Engel & Volkers grants the franchisee the right to open and operate an additional physical location within their protected area. Furthermore, a one-time fee of $2,500 applies for any Limited Purpose Location that Engel & Volkers permits the franchisee to open.
It is important to note that both the initial franchise fee and any Limited Purpose Location fees are non-refundable. These fees must be paid via cashier's check, certified bank check, or any other method specified by Engel & Volkers in accordance with the Franchise Agreement. Understanding these factors is crucial for prospective franchisees as they evaluate the financial requirements and potential costs associated with establishing and expanding an Engel & Volkers franchise.