What is Grund Genug Verlag's role as a supplier for Engel & Volkers franchisees?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently require that you purchase from us, one of our affiliates, or suppliers approved by us, certain marketing materials, including pens, printed materials and brochures that feature the Trademarks. As discussed below, you will have to place advertisements within the GG Magazines from Grund Genug Verlag. However, if we grant you a franchise to operate multiple Approved Locations, you must place at least 1 full page advertisement per year for the first and second Approved Location, at least 1 additional full page advertisement per year for the third and fourth Approved Location and at least 1 additional advertisement per year for five or subsequent Approved Location, for a maximum of 3 required ads per year total. This number may vary in future. See Item 11. We reserve the right to designate one or more third parties, ourselves or an affiliate to supply you with certain categories of other goods or services. Currently, Grund Genug Verlag is an approved supplier. At this time, there are no other approved suppliers.
Our affiliate Grund Genug Verlag is the only approved supplier of GG Magazine as described above.
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.
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%.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–40)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Grund Genug Verlag serves as an approved supplier, specifically as the sole approved supplier of GG Magazines. Engel & Volkers requires franchisees to place advertisements in GG Magazines. The number of required advertisements depends on the number of approved locations a franchisee operates. For the first and second locations, at least one full-page advertisement per year is required for each location. For the third and fourth locations, an additional full-page advertisement per year is required. For five or more locations, one additional advertisement per year is required, with a maximum of three required ads per year in total. This requirement may change in the future.
Engel & Volkers retains the right to designate or approve other suppliers, and franchisees may purchase certain trademarked products or services from suppliers approved by Engel & Volkers. However, Grund Genug Verlag remains the only approved supplier for GG Magazines. If a franchisee wishes to use a supplier not already approved, they must submit the supplier's information, specifications, and samples to Engel & Volkers for approval. Engel & Volkers will then decide whether to approve the supplier, and approval must be in writing.
In 2024, Grund Genug Verlag, along with other Engel & Volkers affiliates, received $3,230,577 from U.S. and Canadian master franchisees and their subfranchisees in the residential real estate brokerage program. This revenue information was derived from the internal financial records of these affiliates. Engel & Volkers estimates that required purchases from approved suppliers will account for approximately 20% to 25% of a franchisee's total purchases of goods and services needed to establish and operate the business. Prospective franchisees should consider the advertising requirements and associated costs when evaluating the Engel & Volkers franchise opportunity.