What does the Engel & Volkers Initial Franchise Fee cover?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Initial Franchise Fee will entitle you to have one person participate in the Franchisee System Training (LPT). If you have a separate brokerage manager, they would have to be trained at an additional charge of $2,498 if you attend the training yourself or have someone else attend it. See Item 5.
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- The Initial Franchise Fee is at minimum $35,000, but could be higher based on the size of your protected area, the number of locations, the market potential, the population base, the character of its residential properties and the total market turn-over.
An additional Initial Franchise Fee of $5,000 Initial Franchise Fee will apply if we grant you the right to open and operate an additional physcial loation within your Protected Area.
An additional one-time fee of $2,500 will apply for any Limited Purpose Location we may permit you to open.
The Initial Franchise Fee and the Limited Purpose Location Fee must be paid by cashier's check, certified bank check or any other method as we require in accordance with the Franchise Agreement.
The Initial Franchise Fee and the Limited Purpose Location Fee are not refundable.
See Item 5.
Source: Item 5 — INITIAL FEES (FDD pages 21–22)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the initial franchise fee entitles a franchisee to have one person participate in the Franchisee System Training (LPT). If a brokerage manager needs training and the franchisee or another individual attends the training, there is an additional charge of $2,498 for the brokerage manager to attend. The initial franchise fee is at a minimum of $35,000, but could be higher depending on factors such as the size of the protected area, the number of locations, market potential, population base, the character of residential properties, and the total market turn-over.
Engel & Volkers may grant a franchise to a newly formed real estate brokerage if the business is in an appropriate market and substantially comprised of real estate agents with the appropriate market reputation, expertise, and clientele database. An additional initial franchise fee of $5,000 applies if Engel & Volkers grants the franchisee the right to open and operate an additional physical location within their protected area. There is also an additional one-time fee of $2,500 for any Limited Purpose Location that Engel & Volkers may permit the franchisee to open.
The Engel & Volkers FDD specifies that the initial franchise fee and any Limited Purpose Location fees are not refundable. These fees must be paid via cashier's check, certified bank check, or any other method Engel & Volkers requires, as outlined in the Franchise Agreement. The training provided is intended to assist franchisees in operating in compliance with the Engel & Volkers system, including proper trademark usage, and to protect the goodwill associated with the brand. However, it does not control the day-to-day operations of the franchised business, such as personnel-related decisions.