What training does the Engel & Volkers Initial Franchise Fee entitle the Franchisee to?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
General:* In order to ensure that Franchisee is able to operate its Residential Real Estate Brokerage in compliance with the ENGEL & VÖLKERS System, Franchisee (or if it is an entity, its Principals) agrees to attend and agrees to send certain of its staff members and Sales Advisors to attend training courses designated by Franchisor. This training will be provided by Franchisor at such locations, or in a virtual format and at times as Franchisor may determine at its sole discretion, and Franchisee shall pay such training fees as may be charged by Franchisor. The Initial Franchise Fee will entitle Franchisee to have one (1) person trained under the Franchisee System Training described in Section 9.2, without charge, but Franchisee must pay a training fee for any additional persons trained under the
System Training and for other training. In any event, any training fees that are charged must be paid by Franchisee prior to the time the trainee is trained. The training program is described below in Sections 9.2 to 9.7.
- 9.2 Franchisee System Training: Franchisee, or if Franchisee or its Principals (as hereinafter defined) will not be active in the operation of the real estate brokerage, Franchisee's brokerage manager and office managers must prior to the Payment Start Date (as defined in Section 14.2.1) attend the Franchisee System Training ("Leadership Path Training" or "LPT") provided by Franchisor at a location or in virtual format, as determined by Franchisor. Any new brokerage manager appointed by Franchisee must successfully complete LPT within ninety (90) days of their appointment.
Source: Item 22 — CONTRACTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the initial franchise fee entitles the franchisee to have one person trained under the Franchisee System Training, also known as Leadership Path Training (LPT), without charge. This training is crucial for ensuring the franchisee can operate their residential real estate brokerage in compliance with the Engel & Volkers system. However, the franchisee is responsible for paying a training fee for any additional persons trained under the System Training and for other training programs offered by Engel & Volkers. These fees must be paid before the trainee attends the training.
The Franchisee System Training (LPT) is mandatory for the franchisee, or if the franchisee or its principals will not be active in the operation, then the brokerage manager and office managers must attend prior to the Payment Start Date. Any new brokerage manager appointed by the franchisee must successfully complete LPT within 90 days of their appointment. This ensures that key personnel are well-versed in the Engel & Volkers system and can effectively manage the brokerage.
Engel & Volkers also provides Sales Advisor System Training, known as Engel & Volkers Engage, which all sales advisors and staff members supporting sales advisors must complete within 90 days of affiliating with the franchisee. Additionally, at least one person in an administrative role supporting the franchisee's Sales Advisors must attend the Engel & Volkers Support Path Training (SPT) before the Opening Date. The franchisee must ensure that at least one person working at the franchised Business has attended SPT at all times.
While the initial franchise fee covers the cost of one person's Franchisee System Training, franchisees should be aware of the additional costs associated with training other staff members and sales advisors. These costs, including travel, accommodation, food, and out-of-pocket expenses, are borne by the franchisee. Engel & Volkers may also develop new training programs that apply only to certain franchisees, and the training requirements and offerings may change over time, so franchisees should stay informed about any updates to the training program.