When are the training fees due for an Engel & Volkers start-up real estate brokerage?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement. The Initial Franchise Fee and the Limited Purpose Location Fee are not refundable. See Item 5.
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- The low estimate is for providing the Engel & Völkers Engage Training to one staff member ($98) and to 3 sales advisors ($98 per person) and for providing SPT Training to one staff member ($298). The high estimate includes SPT Training for 2 staff members and in-person Engel & Völkers Engage Training for up to 50 attendees. We do not usually offer Engel & Völkers Engage Training in person, but if, upon your request we agreed to provide it in person we will charge you $4,998 for that training. We would then provide your sales advisors and/or staff members a 1 day Engel & Völkers Engage training at a location in the U.S. that we designate. The fee for the in person Engel & Völkers Engage includes the trainer's compensation, travel, accommodation and incedental expenses, the training course materials and their shipment. A minimum of 15 but no more than 50 attendees would be trained.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the timing of training fee payments is not explicitly detailed. However, Item 7 outlines various training costs. The low estimate for Engel & Volkers Engage Training is $98 per person for one staff member and three sales advisors, plus $298 for SPT Training for one staff member. The high estimate includes SPT Training for two staff members and in-person Engel & Volkers Engage Training for up to 50 attendees, costing $4,998 if Engel & Volkers agrees to provide it in person. The highest estimated amount for virtual Engel & Volkers Engage Training is $2,752, covering training for two staff members and 20 sales advisors, plus SPT Training for two staff members.
Item 7 also mentions that the initial franchise fee entitles one person to participate in the Franchisee System Training (LPT). If a separate brokerage manager needs training, it costs an additional $2,498 if the franchisee or someone else attends the training. Given that the FDD specifies when the initial franchise fee and Limited Purpose Location Fee are due (paid by cashier's check, certified bank check, or another method required by Engel & Volkers), it is reasonable to assume that training fees are likely due around the same time, prior to the commencement of training.
Since the exact due date for training fees is not specified in the FDD, prospective Engel & Volkers franchisees should clarify this with the franchisor during their due diligence. Understanding the payment schedule for these fees is crucial for financial planning and ensuring a smooth onboarding process. Franchisees should also inquire about any potential financing options for these fees, although the FDD states that Engel & Volkers does not offer financing.