How much conversion assistance did Engel & Volkers provide to franchisees in 2024?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ecember 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Franchise units not yet opened | $ 327,894 | $ 425,237 |
| Opened franchise units | 646,254 | 681,084 |
| Total | $ 974,148 | $ 1,106,321 |
Significant changes in deferred admission fees and up-front fees from direct and master franchisees for the years ended December 31, 2024 and 2023, are as follows:
| | 2024 | 2023 | |------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the company provided $10,000 in conversion assistance to franchisees during 2024. This is a notable decrease from the $89,010 provided in 2023.
Conversion assistance, as detailed in Note 2, involves Engel & Volkers offering cash to franchisees to help them build out their place of business. This assistance is provided to certain franchisees and is factored into how admission fees are recognized as revenue. Specifically, admission fees are recorded net of any cash consideration paid or payable to the franchisee and are recognized over the term of the franchise agreement.
For a prospective Engel & Volkers franchisee, the availability and amount of conversion assistance can be a significant factor in the initial investment and setup costs. The decrease in conversion assistance from 2023 to 2024 suggests that Engel & Volkers may be altering its financial support strategies for new franchisees. It would be prudent for potential franchisees to inquire about the specific conditions and eligibility criteria for receiving conversion assistance, as well as to understand how this assistance impacts the overall financial relationship with the franchisor.