Is an Engel & Volkers franchisee required to pay a renewal fee to renew their franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise | §19.1 | 10 years |
| term | ||
| b. Renewal or extension of | §§19.2, 19.3 | 1 period of 10 years |
| the term | ||
| c. Requirements for franchisee to renew or extend | §§19.2, 19.3 | Serve written notice on us at least 6 mopnths before expiration of current term, comply with all provisions of Franchise Agreement and other agreements with us, sign the then current form of Franchise Agreement, sign a general release and pay a renewal fee. You may be asked to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
Yes, according to Engel & Volkers's 2025 Franchise Disclosure Document, franchisees are required to pay a renewal fee to renew their franchise. The initial franchise term is 10 years, with an option to renew for one additional term of 10 years. To renew the franchise, the franchisee must provide written notice to Engel & Volkers at least six months before the expiration of the current term.
In addition to providing timely notice, the franchisee must also comply with all provisions of the existing Franchise Agreement and any other agreements they have with Engel & Volkers. Furthermore, franchisees must sign the then-current form of the Franchise Agreement, which may contain materially different terms and conditions than the original agreement. They must also sign a general release.
Paying a renewal fee is a standard practice in franchising, and the fee amount can vary significantly among different franchise systems. It is important to note that the new Franchise Agreement may have different terms and conditions than the original, so prospective franchisees should carefully review the renewal agreement and seek legal counsel if needed.