When might an Engel & Volkers franchisee incur build-out costs?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Your real estate brokerage must be in an appropriate location approved by us.
You might incur build-out cost if the interior and/or exterior of your location does not meet our design specifications as set forth in the System Documentation.
If you operate your own Engel & Völkers Residential Real Estate Brokerages, you, the person managing your residential real estate brokerage, and all sales advisors, must maintain a real estate broker's or salesperson's license.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, a franchisee might incur build-out costs if the interior and/or exterior of their real estate brokerage location does not meet the design specifications outlined in the Engel & Volkers System Documentation. The FDD states that the real estate brokerage must be in an appropriate location approved by Engel & Volkers.
Before signing a lease, Engel & Volkers must approve the location of the real estate brokerage. The document recommends that the size of the real estate brokerage be approximately 750 to 2,000 square feet.
Prospective franchisees should carefully review the Engel & Volkers System Documentation, which is provided after signing the Franchise Agreement, to understand the specific design requirements. This will help in assessing potential build-out costs associated with a particular location. Franchisees have the option to purchase furniture, equipment, and signage from a vendor of their choice, provided the vendor is approved by Engel & Volkers.