What is the purpose of a limited purpose location for an Engel & Volkers franchise?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Limited Purpose Location Fee | $2,500 per location | Upon receipt of an invoice. | Payable if we permit you to open an additional physical location as a limited purpose location for sales or administrative purposes. |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, a franchisee may be permitted to open an additional physical location as a limited purpose location for sales or administrative purposes. If Engel & Volkers permits the franchisee to do so, the franchisee must pay a Limited Purpose Location Fee of $2,500 per location. This fee is due upon receipt of an invoice.
This suggests that Engel & Volkers franchisees have the option to expand their physical presence beyond their primary location, but these additional locations are specifically restricted to sales or administrative functions. This could allow franchisees to better serve specific geographic areas or customer segments without the full overhead of a complete, independent franchise unit.
For a prospective franchisee, this means there's a potential avenue for growth and market penetration. However, it's essential to consider whether the benefits of a limited purpose location outweigh the additional costs, including the $2,500 fee and ongoing operational expenses. Franchisees should carefully evaluate their market and business strategy to determine if such a location would be a worthwhile investment.