Does Engel & Volkers guarantee any particular amount of Gross Revenues for franchisees?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
The decreasing National Marketing and Technology Fund fee rate is intended as an award for franchisees that achieve high Gross Revenues. The annual Gross Revenues amounts that need to be achieved to obtain the lower National Marketing and Technology Fund are not intended to reflect your likely Gross Revenues, or any particular level of Gross Revenues possible in your Protected Area, and we do not represent, promise, or guarantee that you will achieve any particular amount of Gross Revenues in any calendar year during the term of your franchise agreement with us.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 43–54)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers does not represent, promise, or guarantee that franchisees will achieve any particular amount of Gross Revenues in any calendar year during the term of the franchise agreement.
The FDD mentions that the decreasing National Marketing and Technology Fund fee rate is intended as an award for franchisees that achieve high Gross Revenues. The annual Gross Revenues amounts that need to be achieved to obtain the lower National Marketing and Technology Fund are not intended to reflect a franchisee's likely Gross Revenues, or any particular level of Gross Revenues possible in their Protected Area.
Prospective franchisees should not rely on the tiered National Marketing and Technology Fund contribution rates as an indication of potential earnings. Instead, they should conduct their own independent research and due diligence to determine the potential for revenue generation in their specific market and location.