How must the Initial Franchise Fee and the Limited Purpose Location Fee be paid to Engel & Volkers?

According to Engel & Volkers' 2025 Franchise Disclosure Document, the Initial Franchise Fee and the Limited Purpose Location Fee must be paid via cashier's check, certified bank check, or any other method that Engel & Volkers requires, as specified in the Franchise Agreement. The Initial Franchise Fee is at least $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 total market turnover. 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. Furthermore, a one-time fee of $2,500 applies for any Limited Purpose Location that Engel & Volkers permits the franchisee to open.

It is important to note that both the Initial Franchise Fee and the Limited Purpose Location Fee are non-refundable. This means that once these fees are paid to Engel & Volkers, they will not be returned to the franchisee under any circumstances. Prospective franchisees should carefully consider their financial situation and business plan before committing to these fees.

This payment method is fairly standard in the franchise industry, as it ensures that the franchisor receives guaranteed funds. Franchisees should be prepared to have these payment methods available when they are ready to finalize their franchise agreement with Engel & Volkers. Reviewing Item 5, as suggested in the FDD, will likely provide further details on the fees and payment terms.