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

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

This fee structure implies that Engel & Volkers maintains control over the expansion of a franchisee's physical presence. It suggests that franchisees cannot simply open additional locations without the franchisor's explicit approval. The limited purpose designation indicates that these additional locations are not intended to function as full-service brokerages but rather to support specific aspects of the business.

For a prospective Engel & Volkers franchisee, this means that any plans to expand beyond the initial franchised location will incur an additional fee of $2,500 per location, subject to Engel & Volkers' approval. This cost should be factored into the franchisee's financial planning if they anticipate needing additional sales or administrative spaces. It is important to note that this fee is separate from other potential costs associated with opening and operating a new location, such as rent, utilities, and staffing.