What is the one-time fee for any Limited Purpose Location that Engel & Volkers may permit me to open?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
of the additional costs that may be incurred when opening a start-up Engel & Völkers Residential Real Estate Brokerage.
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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 Puprose Location Fee must be paid by cashier's check, certified bank check or any other method as we require i
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, if they permit you to open a Limited Purpose Location, you must pay a one-time fee of $2,500. This fee is in addition to the initial franchise fee. The initial franchise fee is at minimum $35,000, but could be higher based on factors such as 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 will apply if Engel & Volkers grants you the right to open and operate an additional physical location within your Protected Area.
Both the Initial Franchise Fee and the Limited Purpose Location Fee must be paid via cashier's check, certified bank check, or any other method Engel & Volkers requires, as outlined in the Franchise Agreement. It is important to note that both the Initial Franchise Fee and the Limited Purpose Location Fee are non-refundable, so a prospective franchisee should carefully consider this before making any payments.
This one-time fee for a Limited Purpose Location is relatively low compared to the full initial franchise fee, which could make it an attractive option for franchisees looking to expand their presence in a specific area without incurring the full costs associated with a traditional location. However, franchisees should carefully evaluate the potential benefits and costs of operating a Limited Purpose Location before committing to the additional fee.