As of the FDD date, does Engel & Volkers have arrangements with designated suppliers to make payments to them?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
yments, rebates, discounts or other allowances for our own account without having any obligation to provide any benefits to you.
As of this date, we do not have any arrangements with designated suppliers to make any payments to us.
We will not provide you with any material benefits if you purchase from or use designated or approved sources.
Our total revenue in the fiscal year ending December 31, 2024 was $27,864,688, including fees and royalties for both the yachting brokerage franchising program and the residential real estate brokerage franchising programs (including our master franchise program). Our revenues from required purchases and leases of products or services in the fiscal year ending December 31, 2024 were $1,325,068 or 4.8% of our total revenues.
Grund Genug Verlag, E&V Technology, E&V Residential and E&V GmbH (f/k/a E&V AG) together received revenues from U.S. and Canadian master franchisees and their subfranchisees in our residential real estate brokerage program in the amount of $3,230,577 in 2024. This information was taken from the internal financial records of these affiliates.
The percentage of your required purchases to all purchases of goods and services you will need to make to establish and operate your business will be approximately 20% to 25%.
We also may negotiate purchase arrangements with suppliers, including price terms, for the benefit of our master franchisees and their subfranchisees, but have not done so at this time. Neither we nor any of our affiliates have received revenues (including rebates) to date from required purchases or leases by U.S. master franchisees or their
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–40)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, as of the date of the FDD, Engel & Volkers does not have any arrangements with designated suppliers to make any payments to them. However, Engel & Volkers' affiliates or Engel & Volkers itself may realize a profit or receive payments, rebates, discounts, or other allowances based on a franchisee's purchases of products and services from approved suppliers. Engel & Volkers or its affiliates may retain these profits, payments, rebates, discounts, or other allowances for their own account without having any obligation to provide any benefits to the franchisee.
Engel & Volkers reserves the right to designate or approve suppliers from whom franchisees must purchase certain products and services. If a franchisee proposes to contract with a supplier not already approved, they must notify Engel & Volkers in writing and submit all requested information, specifications, and samples. Engel & Volkers will then decide whether to approve the supplier, and approval may be conditional on factors such as delivery frequency, service standards, insurance protection, indemnity and confidentiality agreements, and the supplier's payment of reasonable license fees if the Trademarks are used.
Engel & Volkers may concentrate purchases with one or more Suppliers to obtain lower prices, better advertising support and/or better services for any group of your business. Engel & Volkers also may negotiate purchase arrangements with suppliers, including price terms, for the benefit of master franchisees and their subfranchisees, but have not done so at this time. Neither Engel & Volkers nor any of its affiliates have received revenues (including rebates) to date from required purchases or leases by U.S. master franchisees or their subfranchisees from third parties.