What is the minimum initial franchise fee for an Engel & Volkers start-up real estate brokerage?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Printing and Promotional Supplies (See Note 11) | $2,500 - $7,500 | As arranged | As incurred | Independent vendors |
| Additional Funds – 3 Months (See Note ) | $20,000 -$60,000 | Cash | As incurred | Various Payees |
| Totals | $91,690 - $288,592 | |||
| (See Notes 14, 15 | ||||
| and 16) |
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- The Initial Franchise Fee is at minimum $35,000, but could be higher based on the size of your protected area, the number of locations, the market potential, the population base, the character of its residential properties and the total market turn-over. An additional Initial Franchise Fee of $5,000 Initial Franchise Fee will apply if we grant you the right to open and operate an additional physcial loation within your Protected Area. An additional one-time fee of $2,500 will apply for any Limited Purpose Location we may permit you to open. The Initial Franchise Fee and the Limited Purpose Location Fee must be paid by cashier's check, certified bank check or any other method as we require in accordance wit
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the minimum initial franchise fee for a start-up real estate brokerage is $35,000. However, this fee can increase based on factors such as the size of the protected area granted to the franchisee, the number of locations they intend to operate, the market potential, the population base, the characteristics of residential properties in the area, and the total market turnover.
Engel & Volkers may also grant a franchise to a newly formed real estate brokerage if the business is located in an appropriate market and is, or will be, substantially comprised of real estate agents who already possess an appropriate market reputation, expertise and database of clientele.
It's important to note that this initial franchise fee is non-refundable. Furthermore, additional fees apply if the franchisee is granted the right to open and operate additional physical locations ($5,000) or limited purpose locations ($2,500). These additional fees are also non-refundable. Therefore, prospective franchisees should carefully consider these factors and the potential for increased fees when evaluating the Engel & Volkers franchise opportunity.