If an Engel & Volkers franchisee does not use a service, does it affect the royalty payments?

According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee's failure to use any of the services offered by Engel & Volkers does not affect the amount of royalty payments owed. The ongoing royalty payments stipulated in Section 14.2 cover the services provided by Engel & Volkers. However, franchisees will have to pay for services of third parties subject to those third parties' or Engel & Volkers' then-current price lists, such as additional training and GG Magazine advertising, and for the cost of marketing materials.

This means that Engel & Volkers franchisees are obligated to pay the full royalty fee regardless of whether they utilize all available services. This is a common practice in franchising, as the royalty fee often covers not just specific services but also the use of the brand name, system, and ongoing support. Franchisees should carefully consider this when evaluating the overall cost of the franchise and whether they anticipate using the services provided.

Engel & Volkers retains the right to modify the System Documentation and may offer optional programs, designations, and services that could entail additional fees. Franchisees are expected to stay informed about these changes and factor potential additional costs into their financial planning. While franchisees can propose service companies or sponsoring vendors, Engel & Volkers maintains the right to approve or disapprove these proposals based on their business judgment.