When renewing an Engel & Volkers Franchise Agreement, what is the amount of the renewal fee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2.5 Franchisee shall have paid to Franchisor a renewal fee in an amount equal to fifty percent (50%) of the Initial Franchise Fee described in Section 14.1 hereof.
Initial Franchise Fee: Franchisee will pay Franchisor a non-refundable Initial Franchise Fee of $35,000.00 by cashier's check or bank certified check, or by such other means as required by Franchisor at the time Franchisee's Residential Real Estate Brokerage opens for business (hereinafter called "Initial Franchise Fee").
EXHIBIT J
RENEWAL RIDER
RENEWAL RIDER (For Franchisees Renewing Their Agreements)
If Franchisee is renewing its Franchise Agreement, the parties agree that Section 19.2 shall be amended to provide that Franchisee shall only have additional renewal term(s) of () years each, and additional renewal term(s) of () years each, and that the renewal fee shall be $ Dated: ENGEL & VÖLKERS AMERICAS, INC. a A Delaware corporation Its: Its: Its:
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to the 2025 Engel & Volkers Franchise Disclosure Document, the renewal fee is 50% of the initial franchise fee. The initial franchise fee is generally $35,000. Therefore, the renewal fee would be $17,500. This fee must be paid to Engel & Volkers when a franchisee renews their agreement.
This renewal fee is a standard practice in franchising, intended to compensate the franchisor for the continued use of their brand, systems, and support. It is important for prospective franchisees to factor this cost into their long-term financial planning. Renewal terms and conditions are subject to the franchise agreement and any applicable amendments.
However, there is also a Renewal Rider (Exhibit J) that states if a franchisee is renewing their Franchise Agreement, Section 19.2 shall be amended to provide that the franchisee shall only have additional renewal term(s) of a certain number of years each, and that the renewal fee shall be a specific dollar amount, which is left blank in the document. It is important to note that the actual renewal fee and term length may be determined by an amendment to the franchise agreement at the time of renewal.