When are inspection and audit costs due to Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Inspection and Audit Costs | You must reimburse us for the cost of inspection or audit, including the charges of our employees, attorneys and accountants, and travel expenses. | On demand | Payable if the inspection or audit shows an underpayment of royalty payments greater than 2%. |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must reimburse Engel & Volkers for inspection and audit costs. These costs cover expenses like charges from Engel & Volkers' employees, attorneys, and accountants, as well as travel expenses.
These inspection and audit costs are due to Engel & Volkers 'on demand'. This means that Engel & Volkers can request payment for these costs at any time they deem necessary, providing franchisees with little advance notice.
However, franchisees are only responsible for these costs if the inspection or audit reveals an underpayment of royalty fees exceeding 2%. This condition offers some protection to franchisees, as they are not liable for inspection costs unless a significant underpayment is discovered.