Is the initial franchise fee for an Engel & Volkers franchise refundable?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
l protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes, or other commercial symbols or indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name.
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- MINNESOTA RULES 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
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- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See MINNESOTA RULES 2860.4400(J) also, a court will determine if a bond is required.
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- The Limitations of Claims section must comply with MINN. STAT. SECTION 80C.17 SUBD. 5.
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- Section 14.1 of the Franchise Agreement is amended by deleting it in its entirety and replacing it with the following:
Initial Franchise Fee: Franchisee will pay Franchisor a non-refundable Initial Fr
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the initial franchise fee is not refundable. The FDD states that the franchisee will pay Engel & Volkers a non-refundable initial franchise fee of $35,000. This fee is due when the franchisee's residential real estate brokerage opens for business.
Furthermore, if the franchisee is granted a franchise for additional physical locations within their existing protected area during the term of the agreement, they must pay an additional non-refundable initial franchise fee of $5,000 for each additional location. This fee is due when Engel & Volkers grants the franchisee the right to open and operate the additional location.
In the franchise industry, it is common for initial franchise fees to be non-refundable, as they cover the franchisor's initial costs in setting up the franchisee, providing training, and granting access to the brand and system. However, prospective franchisees should carefully consider this non-refundable aspect and conduct thorough due diligence before investing in an Engel & Volkers franchise.