For an Engel & Volkers franchise in Washington, what conditions must be met before the Initial Franchise Fee is paid?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
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- The first sentence of Item 5 is amended to read:
"You must pay us an initial franchise fee ('Initial Franchise Fee') at a minimum amount of $35,000 at the time you have received all pre-opning and initial training (Engel & Völkers Franchisee System Training ), at least one employee has completed the SPT Training, and you are open for business."
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the standard payment terms for the initial franchise fee are modified for franchises in Washington state. The initial franchise fee, with a minimum amount of $35,000, is due when specific conditions are met.
For an Engel & Volkers franchise in Washington, the initial franchise fee is not due until the franchisee has completed all pre-opening and initial training, referred to as "Engel & Völkers Franchisee System Training." Additionally, at least one employee must complete the SPT Training.
Finally, the franchisee must be open for business before the initial franchise fee is due. This addendum ensures that franchisees in Washington are not required to pay the initial fee until they have completed training and are ready to commence operations.