When are the furniture, equipment, and signage expenses due for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee | Minimum of $35,000 (See Note 1) | (See Note 1) | On signing the Franchise Agreement (See Note 1) | Us |
| Training Fees (See Note 2) | $690 - $5,594 | As arranged | Before commencing training | Us |
| Training Fee for | $0 to $2,498 | As arranged | Before | Us |
| brokerage manager | commencing | |||
| (See Note 16) | training | |||
| Travel and Accommodation Expenses While Training (See Note 3) | $5,000 - $10,000 | As arranged | As incurred before commencing training | Independent Vendor |
| License and Trade Requirements | (See Note 5) | (See Note 5) | Before opening for business (See Note 5) | (See Note 5) |
| Furniture, Equipment and Signage (See Note 6) | $15,000 - $120,000 | As arranged | Before opening for business. As incurred | Independent Vendors |
| MLS Research/Set Up Fee (See Note 7) | Varies | As arranged | Before opening for business, if and when arranged | Us or our agent or Independent Vendors |
| Advertising | $3,500 - $15,000 | As arranged | As incurred | Independent |
| (See Note 8) | Vendors | |||
| Insurance | $5,000 - $8,000 | As arranged | When arranged | Independent |
| (See Note 9) | Carrier | |||
| Grand Opening | $5,000 - $25,000 | As arranged | When arranged | Various |
| (See Note 10) | Payees | |||
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
| --- | --- | --- | --- | --- |
| Printing and Promotional Supplies (See Note 11) | $2,500 - $7,500 | As arranged | As incurred | Independent vendors |
| Additional Funds – 3 Months (See Note ) | $20,000 -$60,000 | Cash | As incurred | Various Payees |
| Totals | $91,690 - $288,592 | |||
| (See Notes 14, 15 | ||||
| and 16) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the expenses for furniture, equipment, and signage are due before opening for business and as incurred. The estimated cost for these items ranges from $15,000 to $120,000, payable to independent vendors. Engel & Volkers will provide a list of required specifications in the Engel & Volkers System Documentation after the Franchise Agreement is signed. Franchisees can purchase these items from a vendor of their choice, provided the vendor is approved by Engel & Volkers.
This means that prospective Engel & Volkers franchisees need to budget for these costs as part of their initial investment. It's important to note that the actual amount spent can vary significantly based on the franchisee's choices and the specific requirements of their location. Franchisees should obtain the System Documentation to understand the specifications and approval process for vendors.
It is also important to note that items not mentioned in the specifications, such as copy machines or printers, can be of any type the franchisee prefers. This flexibility allows franchisees to manage costs and choose equipment that best suits their needs. However, franchisees must ensure that all required furniture, equipment, and signage meet Engel & Volkers' standards before opening their business.