How must the one-time fee for an Engel & Volkers Limited Purpose Sales Location be paid?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| as set forth in the FA. | WHEREAS, Franchisor and Franchisee entered into a Franchise Agreement, dated (the |
|---|---|
| "FA") providing Franchisee with the right to use the ENGEL & VÖLKERS System to operate an Engel & | |
| Völkers Residential Real Estate Brokerage and conduct the franchised Business at an Approved Location | |
| WHEREAS, Franchisee has requested to operate, as part of Franchisee's franchised Business | |
| under the FA, an additional location within Franchisee's Protected Area for the limited purpose of selling | |
| residential property of a New Development (as defined hereinafter). | |
| in the FA. | NOW THEREFORE, in consideration of the provisions in the FA, the promises in this Limited |
| Purpose Sales Location Addendum, and other good and valuable consideration, the delivery, receipt, and | |
| sufficiency of which are acknowledged, the parties mutually agree as set forth below. All capitalized terms | |
| not defined in this Limited Purpose Sales Location Addendum shall have the respective meanings set forth | |
| 1. | Grant of Limited Purpose Sales Location: |
| 1.1 | Subject to the terms of this Limited Purpose Sales Location Addendum and the FA, |
| Franchisor hereby grants Franchisee the non-exclusive, non-transferrable right to | |
| establish and operate a limited purpose sales location at, and only at the following | |
| location: | |
| (the | |
| "Limited | |
| Purpose | |
| Sales | |
| Location") within Franchisee's Protected Area. | |
| 1.2 | Franchisee acknowledges and agrees that the Limited Purpose Sales Location is not |
| deemed to be nor does it constitute, replace or otherwise amend Franchisee's obligation | |
| to establish and operate an Approved Location as set forth in the FA. | |
| 1.3 | Franchisee may not relocate the Limited Purpose Sales Location without Franchisors prior |
| written consent. Operating this Limited Purpose Sales Location does not guarantee | |
| Franchisor's consent to gr |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the one-time, non-refundable fee of $2,500 for a Limited Purpose Sales Location must be paid by wire transfer or by such other means as required by Engel & Volkers. This payment is due at the time of execution of the Limited Purpose Sales Location Addendum.
This means that if a franchisee chooses to add a Limited Purpose Sales Location to their existing Engel & Volkers franchise, they will incur this additional fee. The method of payment is specific, requiring either a wire transfer or another method deemed acceptable by Engel & Volkers. The timing of the payment is also clearly defined, as it must be paid when the addendum to the franchise agreement is signed.
It is important for prospective franchisees to note that this fee is non-refundable, regardless of the success or failure of the Limited Purpose Sales Location. Franchisees should ensure they have the funds readily available at the time of signing the addendum to avoid any delays or potential breaches of the agreement. Additionally, franchisees should confirm with Engel & Volkers the acceptable 'other means' of payment, if wire transfer is not feasible for them.