What is the one-time, non-refundable fee for an Engel & Volkers Administrative Location?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS | LIMITED PURPOSE ADMINSTRATIVE LOCATION ADDENDUM ("Administrative Location Addendum") is made and entered into this (the "Effective Date") by and between ENGEL & VÖLKERS AMERICAS, INC., a Delaware corporation ("Franchisor"), and, a ("Franchisee"). |
|---|---|
| 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 an additional location within Franchisee's | |
| Protected Area for the limited purpose of housing Franchisee's administrative and support personnel and | |
| related administrative tasks for Franchisee's franchised Business. | |
| FA. | NOW THEREFORE, in consideration of the provisions in the FA, the promises in this |
| Administrative 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 Administrative Location Addendum shall have the respective meanings set forth in the | |
| 1. | Grant of Limited Purpose Administrative Location: |
| 1.1 | Franchisor hereby grants Franchisee the non-exclusive, non-transferrable right to |
| establish and operate a Limited Purpose Administrative Location at, and only at the | |
| following | |
| location: | |
| (the | |
| "Administrative | |
| Location") within Franchisee's Protected Area subject to the terms of this Administrative | |
| Location Addendum and the FA. | |
| 1.2 | Franchisee acknowledges and agrees that the Administrative 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 Administrative Location without Franchisors prior |
| written consent. Operating this Administrative Loc |
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, a franchisee must pay a one-time, non-refundable fee of $2,500 for an Administrative Location. This fee is payable via wire transfer or another method specified by Engel & Volkers at the time the Administrative Location Addendum is executed. This fee grants the franchisee the right to operate an additional location within their protected area for administrative and support personnel.
The Administrative Location is specifically for housing administrative and support staff and performing related tasks and is not a substitute for the standard Approved Location required by the Franchise Agreement. Engel & Volkers retains control over the location, and the franchisee needs prior written consent to relocate it. Furthermore, operating an Administrative Location does not guarantee the franchisee the right to acquire additional franchises or operate additional administrative locations in the future.
This fee is separate from the initial franchise fee of $35,000 required when opening a Residential Real Estate Brokerage. The Administrative Location Addendum outlines specific limitations, including that the location cannot bear Engel & Volkers' trademarks or be identified as an Engel & Volkers location. Franchisees are also responsible for all costs associated with constructing, remodeling, and equipping the Administrative Location, ensuring it is well-maintained.
The franchisee cannot permit public traffic, on-site client interactions, or real estate transactions at the Administrative Location, and it must be kept separate from residential real estate brokerage services. The address of the Administrative Location cannot be used on business cards, websites, or marketing materials. These restrictions highlight the limited purpose of the Administrative Location and the importance of adhering to Engel & Volkers' standards and guidelines.