When is the Transfer Fee due for an Engel & Volkers franchise?
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' 2025 Franchise Disclosure Document, the Transfer Fee is due either before or at the time of the franchise transfer. The standard administrative transfer fee is $2,500. However, if the transfer involves a securities offering, the fee is $10,000, or an amount necessary to cover Engel & Volkers' reasonable costs.
This means that if a franchisee decides to sell their Engel & Volkers franchise to someone else, they must pay this fee to Engel & Volkers at the time of the transfer. The fee covers Engel & Volkers' administrative costs associated with the transfer. If the transfer involves a securities offering, the fee increases to cover the higher costs associated with that type of transaction.
It is important for prospective franchisees to understand this fee, as it will impact their proceeds from the sale of their franchise. Franchisees should also be aware that the fee may be higher than $10,000 if the transfer involves a securities offering and Engel & Volkers' costs exceed that amount. Franchisees should clarify with Engel & Volkers what constitutes a 'securities offering' to understand when the higher fee applies.