When is the Initial Franchise Fee payable for an Engel & Volkers Residential Real Estate Brokerage?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
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- The first sentence of Item 5 is amended to read:
"You must pay us an initial franchise f
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the initial franchise fee, with a minimum amount of $35,000, is payable when specific conditions are met. These conditions include the franchisee having received all pre-opening and initial training, at least one employee completing SPT Training, and the business being open for operation.
This means that a prospective Engel & Volkers franchisee will not be required to pay the full initial franchise fee upfront. Instead, the payment is contingent upon the completion of training milestones and the commencement of business operations. This arrangement could be beneficial for franchisees as it aligns the payment with tangible progress and reduces the initial financial burden.
However, franchisees should be aware of these conditions and plan accordingly to ensure they meet all requirements to trigger the payment of the initial franchise fee. Failing to meet these conditions could delay the opening of their Engel & Volkers Residential Real Estate Brokerage.