How must the initial franchise fee be paid to Engel & Volkers in Minnesota?
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 Franchise Fee of $35,000.00 by cashier's check or bank certified check, or by such other means as required by Franchisor at the time Franchisee's Residential Real Estate Brokerage opens for business (hereinafter called "Initial Franchise Fee"). Should during the Term of this Agreement Franchisor grant Franchisee a franchise for additional physical locations to be opened and operated by Franchisee within Franchisee's existing Protected Area as set forth
in Section 2.3 and Appendix 1, Franchisee will pay Franchisor an additional non-refundable Initial Franchise Fee of $5,000 by cashier's check or bank certified check, or by such other means as required by Franchisor for each such additional physical location at the time of Franchisor grants Franchisee the right to open and operate such location.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the method of payment for the initial franchise fee in Minnesota is not explicitly detailed. However, the standard agreement states that the initial franchise fee of $35,000 is to be paid by cashier's check or bank certified check, or by such other means as required by Franchisor.
Given the Minnesota Amendment's purpose is to comply with Minnesota statutes and regulations, prospective franchisees should confirm with Engel & Volkers whether the standard payment methods apply or if there are specific requirements for Minnesota. This is crucial to ensure compliance with state laws and the franchise agreement.
It is important to note that the initial franchise fee is non-refundable. Franchisees should clarify acceptable payment methods with Engel & Volkers to avoid any potential issues during the franchise opening process.