When are the initial admission (franchise) fees and up-front franchise fees payable to Engel & Volkers?

According to Engel & Volkers' 2025 Franchise Disclosure Document, both the initial admission fee and the up-front franchise fee from a master franchisee are nonrefundable. These fees are payable when the underlying agreement is signed by either the franchisee or the master franchisee. This means that a prospective Engel & Volkers franchisee must be prepared to pay these fees at the time of signing the franchise agreement.

This requirement has significant implications for franchisees. Because the fees are nonrefundable, franchisees risk losing this initial investment if they later decide not to proceed with opening their Engel & Volkers franchise or if the franchise agreement is terminated for any reason. It is crucial for potential franchisees to conduct thorough due diligence and carefully evaluate their financial situation and business plan before signing the agreement and paying these fees.

In the franchise industry, it is common for initial franchise fees to be paid upon signing the franchise agreement. However, the nonrefundable nature of Engel & Volkers' fees is a point to consider carefully. Prospective franchisees should seek legal and financial advice to fully understand the terms and conditions of the franchise agreement and the implications of the nonrefundable fees. Understanding these terms is essential for making an informed decision about investing in an Engel & Volkers franchise.