What is the minimum annual gross revenue an Engel & Volkers outlet must generate to be classified in Tier 5?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Tier | Annual Gross Revenues (reported and paid on a calendar year basis) From To | National Marketing Fund Fee Rate | |
|---|---|---|---|
| 1 | $0 | $2,000,000 | 2.00% |
| 2 | $2,000,000.01 | $5,000,000 | 1.875% |
| 3 | $5,000,000.01 | $10,000,000 | 1.750% |
| 4 | $10,000,000.01 | $30,000,000 | 1.625% |
| 5 | $30,000,000.01 | and above | 1.500% |
Source: Item 23 — RECEIPTS (FDD pages 88–302)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a Tier 5 Engel & Volkers franchise must generate annual gross revenues of $30,000,000.01 or more. This revenue is reported and paid on a calendar year basis. The tier level determines the National Marketing Fund fee rate that the franchisee will pay.
For Engel & Volkers franchisees, understanding the revenue tiers is crucial for financial planning and assessing the marketing fund obligations. The National Marketing Fund fee for Tier 5 is 1.500%.
Prospective franchisees should consider their market potential and business plan to estimate their potential revenue tier and associated marketing fund fees. Accurately projecting revenue is essential for determining the overall profitability and financial viability of an Engel & Volkers franchise.