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Engel & Volkers

E&V Residential

Company Information

430 Park Avenue 11th Floor

[email protected]

The franchisor is Engel & Völkers Americas, Inc., a Delaware corporation incorporated on November 17, 2005, with its principal place of business at 430 Park Avenue, 11th Floor, New York, NY 10022. Its ultimate parent is Permira VII Inv. Platform S.à.r.l, a Luxembourg limited liability company.

We have two pnmary lines of business a real estate brokerage franchise program and the yachting brokerage franchise program Those two lines of business constitute our entire business Under the real estate brokerage program our business is to grant direct licenses and master licenses in the United States and Canada and to provide services to our direct licensees and master licensees for the residential property segment consisting of (i) the opportunity to open and operate Engel & Volkers Residential Real Estate Brokerages for the marketing of residential property under the Engel & Volkers trade name, Trademarks and System of operating procedures, including the utilization of a worldwide client platform, and (ii) for our master licensees, the nght to grant sublicenses to third parties to own and operate Residential Real Estate Brokerages using the real estate brokerage system In Florida, a master licensee has been granted exclusive nghts to offer License Agreements for the operation of Engel & Volkers Residential Real Estate Brokerages As of December 31, 2018, we had 130 franchised and subfranchised real estate brokerage locations in the United States In addition, we are now also granting direct licenses in New York, California and Florida and providing services to direct licensees regarding the yachting segment consisting of (i) the opportunity to open and operate Engel & Volkers Yachting Brokerages for the marketing of exclusive yachts and moormgs and providing yacht management services under the Engel & Volkers trade name. Trademarks and System of brand operating procedures, including the utilization of a worldwide client platform At this time, we will offer License Agreements for the operation of Engel & Volkers Yachting Brokerages only m New York, California and Flonda For the yachting segment, we are pnmanly seeking conversion franchisees already m the yachting brokerage business who can operate from high-end mannas and retail locations in high-end commercial areas (“Yachting Shops”) close to such mannas Our only business is to franchise yachting brokerages and real estate brokerages and we do not conduct the type of business that you and other licensees will operate We began offenng master licenses in the residential segment m February 2006 and we disclose the sale of residential real estate master licenses by a separate FDD We began offering direct licenses m the residential segment in April 2011 and we disclose the sale of residential real estate direct licenses by a separate FDD We initially began offenng yachting brokerage licenses in October 2012, but as of December 31, 2014 temporanly stopped pursuing the yachting program As of the effective date of this Franchise Disclosure Document we are now beginning to offer the yachting program again in the United States

7 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

1/10

Earning Transparency

1/10

Investment Accessibility

1/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Engel & Volkers Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $35,690 Maximum: $43,092

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $176,690 Maximum: $423,592

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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