When is the Engel & Volkers initial franchise fee due?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee | Minimum of $35,000 (See Note 1) | (See Note 1) | On signing the Franchise Agreement (See Note 1) | Us |
| Training Fees (See Note 2) | $690 - $5,594 | As arranged | Before commencing training | Us |
| Training Fee for | $0 to $2,498 | As arranged | Before | Us |
| brokerage manager | commencing | |||
| (See Note 16) | training | |||
| Travel and Accommodation Expenses While Training (See Note 3) | $5,000 - $10,000 | As arranged | As incurred before commencing training | Independent Vendor |
| License and Trade Requirements | (See Note 5) | (See Note 5) | Before opening for business (See Note 5) | (See Note 5) |
| Furniture, Equipment and Signage (See Note 6) | $15,000 - $120,000 | As arranged | Before opening for business. As incurred | Independent Vendors |
| MLS Research/Set Up Fee (See Note 7) | Varies | As arranged | Before opening for business, if and when arranged | Us or our agent or Independent Vendors |
| Advertising | $3,500 - $15,000 | As arranged | As incurred | Independent |
| (See Note 8) | Vendors | |||
| Insurance | $5,000 - $8,000 | As arranged | When arranged | Independent |
| (See Note 9) | Carrier | |||
| Grand Opening | $5,000 - $25,000 | As arranged | When arranged | Various |
| (See Note 10) | Payees | |||
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
| --- | --- | --- | --- | --- |
| Printing and Promotional Supplies (See Note 11) | $2,500 - $7,500 | As arranged | As incurred | Independent vendors |
| Additional Funds – 3 Months (See Note ) | $20,000 -$60,000 | Cash | As incurred | Various Payees |
| Totals | $91,690 - $288,592 | |||
| (See Notes 14, 15 | ||||
| and 16) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the initial franchise fee is due upon signing the Franchise Agreement. The minimum initial franchise fee is $35,000, but it 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 total market turnover.
Engel & Volkers also charges additional fees for various situations. For example, if Engel & Volkers grants the franchisee the right to open and operate an additional physical location within their protected area, an additional initial franchise fee of $5,000 will apply. Furthermore, there is a one-time fee of $2,500 for any Limited Purpose Location that Engel & Volkers may permit the franchisee to open.
It is important to note that the initial franchise fee and the Limited Purpose Location Fee must be paid via cashier's check, certified bank check, or any other method required by Engel & Volkers in accordance with the Franchise Agreement. These fees are non-refundable, so prospective franchisees should carefully consider their decision before signing the agreement and remitting payment.