What are some of the risks Engel & Volkers is subject to when operating outside the United States?

According to Engel & Volkers' 2025 Franchise Disclosure Document, operating outside of the United States carries specific risks. Engel & Volkers' foreign operations, which include a subsidiary in Canada, are subject to risks inherent in operating under different legal systems and diverse political and economic environments. These risks include potential changes in existing tax laws, which could impact profitability and financial planning.

Additionally, Engel & Volkers faces possible limitations on foreign investment and the repatriation of income, which could restrict the ability to move profits back to the parent company or invest further in the foreign market. Government price or foreign exchange controls could also affect Engel & Volkers' financial performance by limiting pricing flexibility or increasing the cost of currency exchange. Restrictions on currency exchange could further complicate financial transactions and impact the overall financial management of the foreign operations.

It is important to note that as of December 31, 2024, and 2023, the net assets of Engel & Volkers' foreign operations represent less than 10% of the company's total net assets. While this indicates that the current exposure to these risks is relatively limited, prospective franchisees should still be aware of these potential challenges when considering international expansion or investment with Engel & Volkers.