When are payments for furniture, equipment, and signage due for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee | Minimum of $35,000 (See Note 1) | (See Note 1) | On signing the Franchise Agreement (See Note 1) | Us |
| Training Fees (See Note 2) | $690 - $5,594 | As arranged | Before commencing training | Us |
| Training Fee for | $0 to $2,498 | As arranged | Before | Us |
| brokerage manager | commencing | |||
| (See Note 16) | training | |||
| Travel and Accommodation Expenses While Training (See Note 3) | $5,000 - $10,000 | As arranged | As incurred before commencing training | Independent Vendor |
| License and Trade Requirements | (See Note 5) | (See Note 5) | Before opening for business (See Note 5) | (See Note 5) |
| Furniture, Equipment and Signage (See Note 6) | $15,000 - $120,000 | As arranged | Before opening for business. As incurred | Independent Vendors |
| MLS Research/Set Up Fee (See Note 7) | Varies | As arranged | Before opening for business, if and when arranged | Us or our agent or Independent Vendors |
| Advertising | $3,500 - $15,000 | As arranged | As incurred | Independent |
| (See Note 8) | Vendors | |||
| Insurance | $5,000 - $8,000 | As arranged | When arranged | Independent |
| (See Note 9) | Carrier | |||
| Grand Opening | $5,000 - $25,000 | As arranged | When arranged | Various |
| (See Note 10) | Payees | |||
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
| --- | --- | --- | --- | --- |
| Printing and Promotional Supplies (See Note 11) | $2,500 - $7,500 | As arranged | As incurred | Independent vendors |
| Additional Funds – 3 Months (See Note ) | $20,000 -$60,000 | Cash | As incurred | Various Payees |
| Totals | $91,690 - $288,592 | |||
| (See Notes 14, 15 | ||||
| and 16) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, payments for furniture, equipment, and signage are due before opening for business and as incurred. The estimated cost for these items ranges from $15,000 to $120,000, and payment arrangements are made with independent vendors.
This means that prospective Engel & Volkers franchisees should plan to have these funds available prior to the launch of their franchise. The 'as incurred' term suggests that payments may be staggered as purchases are made, rather than requiring a single upfront payment. However, franchisees need to budget appropriately to ensure all necessary items are acquired before the business opens.
It is important to note that Engel & Volkers must approve the vendors from which these items are purchased. Franchisees have some flexibility in choosing vendors, but they must adhere to the franchisor's approved list. This is a common practice in franchising to maintain brand consistency and quality standards. Franchisees should confirm vendor options and payment schedules with Engel & Volkers during the setup phase.
Given the wide range in estimated costs ($15,000 to $120,000), franchisees should carefully assess their specific needs and budget. Factors such as the size and location of the brokerage can significantly impact these expenses. It would be prudent for prospective franchisees to develop a detailed procurement plan and obtain quotes from approved vendors to refine their initial investment estimates.