Engel & Völkers Franchise Cost & Fees

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Description

 

Globally successful real estate franchise with Engel & Völkers

Present at over 800 locations worldwide, the Engel & Völkers real estate franchise includes a network of more than 10,000 employees. Our business model, which combines the marketing of exclusive real estate with over 40 years of industry experience and a full service philosophy, is internationally well received today and has generated total sales of 667.8 million euros in 2017 alone. At the same time, the success story of the Engel & Völkers real estate franchise has just begun: for our free license areas, we are looking for you as a dedicated license partner.

Founded in Hamburg, Germany over thirty years ago, Engel & Völkers, an established leader in the European high-end real estate market and one of the most prominent names in global luxury real estate, has now arrived in America. The Engel & Völkers brand is known for serving exclusive property buyers and sellers with a worldwide-standardized system that is, frankly, several steps above anything being used in the United States today. Engel & Völkers now operates in 25 countries across five continents and opens up a brand new boutique-style shop somewhere in the world every 75 hours.

Year Business Began: 1977

Franchising Since: 1997

U.S. Headquarters: New York, New York

Country of Origin: Germany

Estimated Number of Units: 800

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 sole business of the franchisor is the granting of master licenses and direct licenses in the United States, Canada, Mexico, and certain parts of the Caribbean and the providing of services to its master licensees and direct licensees regarding the residential property segment consisting of (i) the opportunity to open and operate Engel & Völkers Residential Real Estate Brokerages for the marketing of residential property under the Engel & Völkers trade name, Trademarks and System of operating procedures, including the utilization of a worldwide client platform, and (ii) for master licensees, the right to grant sublicenses to third parties to own and operate Residential Real Estate Brokerages using the Engel & Völkers System.

Training Overview: The franchisor will conduct training courses, seminars or conferences for franchisees at a location it selects in the United States or Canada at its discretion. If an individual Licensee or the Principals of a business entity in which Licensee will not be active in the Residential Real Estate Brokerage, then the brokerage manager must attend the applicable training course. Attendance at these courses is mandatory. The franchisor will conduct training courses for franchisees, their Brokerage Manager, their sales advisors and employees at employees at either the Engel & Völkers facility in the United States or at another location in the United States or Canada as determined in its sole discretion. The franchisor reserves the right to offer additional, ongoing and supplemental training sessions at times and locations it designates. The franchisor may make certain of these training sessions mandatory for franchisees, and it reserves the right to charge a fee for attendance at this training. Franchisees and their designated employees will also be required to attend additional initial training, supplemental or refresher courses in accordance with the Engel & Völkers training program at times and locations designated by the franchisor and to pay its then current fees.

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 License Agreement. Franchisees will have exclusivity with regard to the 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 License Agreement.Obligations and Restrictions: The franchisor neither requires nor makes any recommendations that franchisees personally supervise or participate in the actual operation of the licensed 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 licensed business on a full-time basis. The License 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 license 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 term of the franchise agreement is 10 years with an option to renew for another 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.

Investment Tables: 

Initial Investment for Conversion Residential Real Estate Brokerage
Name of Fee Low High
Admission Fee Minimum of $35,000
Training Fees $2,050 $10,232
Training Fee for Brokerage Manager $0 $2,498
Travel and Accommodation Expenses While Training $5,000 $15,000
License and Trade Requirements Varies
Furniture, Equipment and Signage $15,000 $120,000
MLS Research/Set Up Fee Varies
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 $60,000
ESTIMATED TOTAL $93,050 $298,230

 

Disclaimer :The above information has been taken from the FDD of Engel & Völkers. Year of FDD: 2018

 

Initial Investment for Start Up Real Estate Brokerage
Name of Fee Low High
Admission Fee Minimum of $35,000
Training Fees $2,050 $10,232
Training Fee for Brokerage Manager $0 $2,498
Travel and Accommodation Expenses While Training $5,000 $15,000
Leasehold Improvements Varies
License and Trade Requirements Varies
Furniture, Equipment and Signage $50,000 $120,000
Supplies $5,000 $15,000
MLS Research/Set Up Fee Varies
Computer and Network $15,000 $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) $50,000 $150,000
ESTIMATED TOTAL $178,050 $433,230