Under what circumstances does Engel & Volkers charge an additional $5,000 Initial Franchise Fee?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Printing and Promotional Supplies (See Note 11) | $2,500 - $7,500 | As arranged | As incurred | Independent vendors |
| Additional Funds – 3 Months (See Note ) | $20,000 -$60,000 | Cash | As incurred | Various Payees |
| Totals | $91,690 - $288,592 | |||
| (See Notes 14, 15 | ||||
| and 16) |
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- The Initial Franchise Fee is at minimum $35,000, but could be higher based on the size of your protected area, the number of locations, the market potential, the population base, the character of its residential properties and the total market turn-over. An additional Initial Franchise Fee of $5,000 Initial Franchis
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–38)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the initial franchise fee is a minimum of $35,000. However, this fee can increase depending on factors such as the size of the protected area, the number of locations, market potential, the population base, the character of residential properties, and the total market turnover.
Engel & Volkers charges an additional $5,000 initial franchise fee if they grant the franchisee the right to open and operate an additional physical location within their protected area. This means that if a franchisee wants to expand their business by opening another office within their exclusive territory, they will incur this extra fee.
This additional fee is important for prospective franchisees to consider when planning their business growth. It highlights that while the initial franchise fee covers the first location, any subsequent physical locations will require further investment. Franchisees should factor this into their financial projections and business plans to ensure they have sufficient capital for expansion.