For how long must an Engel & Volkers franchisee maintain adequate reserves and working capital?

According to Engel & Volkers' 2025 Franchise Disclosure Document, franchisees must maintain a separate bank account for direct debit of royalties, contributions to the National Marketing and Technology Fund, and other fees owed under the Franchise Agreement. This account must be maintained at all times and have a cash balance sufficient to cover such direct debits.

This requirement ensures that Engel & Volkers franchisees have the financial means to meet their ongoing financial obligations to the company. By mandating a dedicated bank account with sufficient funds, Engel & Volkers aims to minimize the risk of late or missed payments, which could disrupt the franchisor-franchisee relationship and potentially lead to breaches of the Franchise Agreement.

Prospective Engel & Volkers franchisees should carefully consider this requirement and ensure they have adequate working capital to maintain the required bank account balance. They should also factor in the potential for fluctuations in royalty payments and other fees when determining the appropriate level of funding for the account. Setting up and diligently maintaining this account is a key responsibility for franchisees to remain in good standing with Engel & Volkers.