Are there any other requirements besides the administrative fee for an Engel & Volkers franchise transfer?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee (See Note 1) | $2,500 administrative fee. $10,000 or such higher amount as is necessary to reimburse our reasonable costs, in the case of a securities offering. | Before or at transfer. | There are no other requirements. (See Note 14) |
Source: Item 6 — OTHER FEES (FDD pages 22–30)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the transfer of a franchise requires a $2,500 administrative fee. However, if the transfer involves a securities offering, the transfer fee will be $10,000, or a higher amount if necessary, to cover the reasonable costs incurred by Engel & Volkers.
Beyond the transfer fee, the FDD explicitly states that there are no other requirements for a franchise transfer. This suggests that Engel & Volkers aims to streamline the transfer process, focusing primarily on the financial aspects of the transaction.
It is important for prospective franchisees to understand the conditions under which the higher transfer fee applies, specifically what constitutes a "securities offering" in this context. Franchisees should also confirm whether there are any unwritten or informal requirements that are not explicitly stated in the FDD, such as training for the new owner or updates to the franchise agreement.