What is the maximum Transfer Fee for an Engel & Volkers franchise in the case of a securities offering?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee (See Note 1) | $2,500 administrative fee. $10,000 or such higher amount as is necessary to reimburse our reasonable costs, in the case of a securities offering. | Before or at transfer. | There are no other requirements. (See Note 14) |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the transfer fee includes a $2,500 administrative fee. However, in the case of a securities offering, the transfer fee could be $10,000, or an even higher amount if necessary to reimburse Engel & Volkers for their reasonable costs. This fee is due before or at the time of the transfer.
For a prospective Engel & Volkers franchisee, this means that if they decide to transfer their franchise through a securities offering, they should be prepared to pay a transfer fee that could exceed the standard $2,500 administrative fee. The actual amount will depend on the costs Engel & Volkers incurs to facilitate the transfer.
It is important for potential franchisees to understand that the transfer fee in the event of a securities offering is not fixed at $10,000. It could be higher if Engel & Volkers's reasonable costs exceed that amount. Therefore, franchisees should communicate with Engel & Volkers to understand what these potential costs could be to accurately budget for a transfer via securities offering.