How must the initial franchise fee be paid to Engel & Volkers?
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 of $35,000 must be paid by cashier's check or bank certified check, or by such other means as required by Engel & Volkers when the franchisee's residential real estate brokerage opens for business. This fee is non-refundable.
If, during the term of the agreement, Engel & Volkers grants the franchisee a franchise for additional physical locations within the existing protected area, the franchisee must pay an additional non-refundable initial franchise fee of $5,000 for each additional location. This payment must also be made by cashier's check or bank certified check, or by such other means as required by Engel & Volkers, at the time Engel & Volkers grants the right to open and operate the additional location.
This requirement ensures that Engel & Volkers receives guaranteed funds for the initial franchise fee and any subsequent expansion within the protected area. The stipulation that the fee is non-refundable underscores the franchisee's commitment and investment in the Engel & Volkers brand. The flexibility for Engel & Volkers to specify other payment methods allows them to adapt to changing financial technologies and operational needs.