Under what circumstances is the Limited Purpose Location Fee payable for an Engel & Volkers franchise?

According to Engel & Volkers's 2025 Franchise Disclosure Document, the Limited Purpose Location Fee is payable if Engel & Volkers permits a franchisee to open an additional physical location. This location must be for limited purposes, specifically for sales or administrative functions. The fee is $2,500 per location and is due upon receipt of an invoice from Engel & Volkers.

This fee structure implies that Engel & Volkers franchisees may have the option to expand their physical presence beyond their primary franchised location. However, this expansion is subject to approval by Engel & Volkers and comes with an additional cost. The limited purpose designation suggests that these additional locations are not intended to be full-service brokerages but rather serve specific functions to support the main operation.

For a prospective Engel & Volkers franchisee, this means that if they plan to expand their operations with additional sales or administrative locations, they need to factor in this $2,500 fee per location. It is important to understand the criteria and process for obtaining permission to open such locations, as well as the restrictions on their use. Franchisees should also consider whether the potential benefits of having additional locations outweigh the associated costs, including this fee and any operational expenses.