Engel & Völkers Franchise Costs, Fees & FDD

Year Business Began: 1977

Franchising Since: 1997

U.S. Headquarters: New York, New York

Country of Origin: Germany

Estimated Number of Units: 1,000

Franchise Description: The franchisor is Engel & Völkers Americas, Inc., a majority owned subsidiary of Engel & Völkers U.S. Holding GmbH, a German limited-liability company. The franchise offered is the right to own and operate an Engel & Völkers Residential Real Estate Brokerage for the marketing of residential property. The franchisor aims to grant Engel & Völkers Residential Real Estate Brokerage franchises to the owners of existing residential real estate brokerages, in appropriate markets, for conversion into an Engel & Völkers Residential Real Estate Brokerage. However, in some circumstances, the franchisor may grant also a license to a newly organized real estate brokerage, provided that it is located in an appropriate market and is, or will be, substantially comprised of real estate agents who already possess an appropriate market reputation, expertise and database of clientele.
Training Overview: The franchisor will conduct training courses, seminars or conferences virtually via web-based training platforms of its choice or, if the training is conducted in-person, at locations it selects in the United States or Canada at its discretion. It is mandatory for an individual franchisee, the principals, or the broker manager (if the individual franchisee or principals will not be active in the residential real estate brokerage) to attend the Leadership Path Training, for Sales Advisors and staff members supporting the sales advisors to attend Engel & Völkers Engage, and for at least one staff member working at the franchised business who supports sales advisors to attend Support Path Training. The franchisor reserves the right to offer additional, ongoing and supplemental training sessions that may apply only to certain franchisees and/or such franchisee’s sales advisors or employees at times and locations designated by the franchisor. The franchisor may make certain of these training sessions mandatory for franchisees, and the franchisor reserves the right to change a fee for attendance at such training.

Territory Granted: Generally, franchisees will receive the right to operate an Engel & Völkers residential real estate brokerage at a specific location as specified in the Franchise Agreement. Franchisees will have exclusivity with regard to their brokerage in a specific area called the “protected area,” which will be an area defined by US postal codes. By “exclusivity” the franchisor means that it will not open or grant to anyone else the right to open another brokerage in the protected area during the term of the Franchise Agreement. “Exclusivity” does not mean that the franchisor, its affiliates, or other franchisees are prevented from soliciting clients, marketing the residential real estate brokerage services, or concluding real estate transactions in the protected area.

Obligations and Restrictions: The franchisor neither requires nor makes any recommendations that franchisees personally supervise or participate in the actual operation of the franchised business. If franchisees do not personally participate, they must employ a brokerage manager. The brokerage manager must be a licensed real estate broker in the franchisee’s state able to supervise the franchised business on a full-time basis. The Franchise Agreement strictly defines the real estate brokerage services the franchisee may provide under the Engel & Völkers name. These defined services are more limited than the scope of activities permitted under most state real estate licensing laws. Under the residential franchise the franchisor is granting to franchisees, they may use the Engel & Völkers name for the listing, offering, selling, exchanging, purchasing, managing, leasing or renting solely of the types of compatible real estate for which a real estate broker’s license is required under local law.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for one additional period of 10 years, if requirements are met.

Financial Assistance: The franchisor does not offer any direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Admission Fee	Minimum of $35,000
Training Fees	$690	$5,594
Training Fee for Brokerage Manager	$0	$2,498
Travel and Accommodation Expenses While Training	$5,000	$10,000
Leasehold Improvements	Varies
License and Trade Requirements	Varies
Furniture, Equipment and Signage	$15,000	$120,000
Supplies	$0	$15,000
MLS Research / Set Up Fee	Varies
Computer and Network	$0	$30,000
Advertising	$3,500	$15,000
Insurance	$5,000	$8,000
Grand Opening	$5,000	$25,000
Printing and Promotional Supplies	$2,500	$7,500
Additional Funds - 3 Months	$20,000	$150,000
ESTIMATED TOTAL*	$91,690	$423,592

*The estimated initial investment range covers from a conversion residential real estate brokerage to a start-up real estate brokerage.


Other Fees

Type of Fee	Amount
Ongoing Royalties	6% of annual gross revenues up to and including $1,000,000, with a minimum annual royalty of $60,000. Percentage decreases incrementally to 3.75% depending on gross revenue level.
Internal Commissions (Referral Fee)	As negotiated between the franchisee and the referring franchisee.
National Marketing Fund Contributions	2% of annual gross revenues up to and including $2,000,000. Percentage decreases incrementally to 1.5% depending on gross revenue level.
Licensee System Training Fees	$4,998 per person.
Sales Advisor System Training Fees	$98 per person.
Employee Training Fees	$298 per person.
Additional Training	At then current training fees.
Conference Fee	Varies.
Global Guide Advertisements	One property advertisement at $3,025 each per year.
Additional IT Services Fees	According to the then current technology price list.
Development Services Designation Annual Fee	$2,500 - $6,000 depending on number of participating designees.
Development Services Consulting Fee	Varies.
Commercial Designation Annual Fee (optional)	$5,000 - $6,000 per year (depending on obtaining a commercial designation).
Limited Purpose Location Fee	$2,500 per location.
Transfer Fee	$2,500 administrative fee. ($10,000 or such higher amount as is necessary to reimburse the franchisor’s reasonable costs, in the case of a securities offering.)
Purchases of Marketing Articles	Varies.
Renewal Fee	50% of initial franchise fee.
Interest	The highest rate permitted by applicable law, or if there is no such rate 4% above the prime rate of interest identified by Citibank, N.A. in New York City.
Attorneys' Fees	Varies.
Indemnification	Franchisees must indemnify the franchisor and other parties against all costs and expenses, including attorney's fees, arising out of claims by third parties as a result of their actions or omissions.
Tax Indemnity	Franchisees must pay the franchisor the amount of any state or local sales, use, gross receipts or similar tax that the franchisor may be required to pay on payments which they make to the franchisor.
Inspection and Audit Costs	Franchisees must reimburse the franchisor for the cost of inspection or audit, including the charges of its employees, attorneys and accountants, and travel expenses.
Liquidated Damages	If the franchise is terminated for the franchisee’s breach: An amount equal to the average monthly royalty fees, national marketing fund contribution and any other fees due and payable under the license agreement from opening to termination multiplied by the lesser of 24 months or the number of full calendar months left on the term.

The above information has been compiled from the FDD of Engel & Völkers. Year of FDD: 2025.
Franchise Direct's Disclaimer