What is the one-time, non-refundable fee for an Engel & Volkers Limited Purpose Sales Location?
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' 2025 Franchise Disclosure Document, a franchisee must pay a one-time, non-refundable fee of $2,500 for a Limited Purpose Sales Location. This fee is due at the time of execution of the Limited Purpose Sales Location Addendum. Payment must be made via wire transfer or another method specified by Engel & Volkers.
This fee grants the franchisee the right to operate a sales location with a limited scope, typically for on-site sales presence in new developments. It's important to note that any gross revenues derived from real estate brokerage services at this location are considered part of the gross revenues of a designated 'Gross Revenue Reporting Location.' This means that the franchisee will pay ongoing royalties and National Marketing and Technology Fund contributions based on the revenues from the Limited Purpose Sales Location, as if they were generated by the primary reporting location.
Engel & Volkers requires that the interior and exterior design of the Limited Purpose Sales Location must align with the requirements for new developments and comply with trademark usage guidelines. The franchisee is responsible for all costs associated with constructing, remodeling, and equipping the location. This initial fee is in addition to other fees outlined in the Franchise Agreement, such as the initial franchise fee for the primary Engel & Volkers residential real estate brokerage.