Engel & VölkersFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Engel & Völkers franchise requires a total initial investment of $177K – $424K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $177K – $424K
- 71st pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- 6.0%
- 21st pct Real Estate
- Units
- 237
- 57th pct Real Estate
- SBA default
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $177K – $424K including a $35K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 76/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Engel & Völkers Americas, Inc.
- Parent company
- E&V Residential
- Ultimate parent
- Permira VII Inv
- Incorporated in
- DE
- HQ
- 430 Park Avenue, 11th Floor, New York, NY 10022
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $26.2M
- vs $27.9M prior year
Overview
About
Franchisees operate as luxury residential real estate brokerages under the Engel & Völkers brand, managing agent teams, client acquisition, and property transactions while adhering to brand standards. Day-to-day activities include listing properties, qualifying buyers, negotiating contracts, managing closing logistics, and generating commission-based revenue split with the franchisor. Franchisees are responsible for staffing, local marketing, compliance with real estate regulations, and maintaining territories against competitive encroachment.
- CEO
- Stuart Siegel
- Headquarters
- NY
- Founded
- 2005
- FDD year
- 2025
- States available
- 40
FDD Item 7 · 2025 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | — | |
| Training Fees | $690 | $6K | |
| Training Fee for brokerage manager | $0 | $2K | |
| Travel and Accommodation Expenses While Training | $5K | $10K | |
| License and Trade Requirements | — | — | |
| Furniture, Equipment and Signage | $15K | $120K | |
| MLS Research/Set Up Fee | — | — | |
| Advertising | $4K | $15K | |
| Insurance | $5K | $8K | |
| Grand Opening | $5K | $25K | |
| Printing and Promotional Supplies | $3K | $8K | |
| Additional Funds - 3 Months | $20K | $60K | |
| Total initial investment | $92K | $254K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $177K – $424K
- Below avg, review vs category
- Liquid capital req'd
- $50K – $150K
- Below avg, review vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $3K |
| Renewal fee | $18K |
| Inventory (initial) | $3K – $8K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Real Estate averages
How Engel & Völkers Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 237
- Opened
- 17
- Last reporting year
- Closed
- 19
- Turnover rate
- 8.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -0.8%
- Net unit change last year
- 3-yr CAGR
- +9.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 40 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 12
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Engel & Völkers presents elevated risk due to shrinking franchisee base, undisclosed financials, active multi-jurisdiction litigation, and regulatory exposure in an inherently cyclical industry.
Litigation (Item 3)
10 case reference(s): 1 pending, 8 settled.
Largest disclosed settlement: $7
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 76 / 100 rating
- 01MINORDeclining unit count (-0.8% YoY) signals system contraction and potential franchisee dissatisfaction
- 02HIGHMultiple active litigation streams (antitrust, breach of contract, no-poaching investigation) create legal and operational uncertainty
- 03MEDNo disclosed average revenue or net income data (absent Item 19) prevents legitimate ROI assessment and suggests franchisor may be hiding unfavorable unit economics
- 04MINORTiered royalty structure (6% to 3.75%) indicates potential performance-based penalties or variable profitability tiers that may disadvantage newer/smaller franchisees
- 05MEDReal estate brokerage model is commission-dependent and cyclical; vulnerable to market downturns and economic sensitivity
- 06HIGHAntitrust litigation specifically regarding 'broker commission rules' suggests franchisor practices may be under regulatory scrutiny and subject to forced change
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip Code |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 9 |
View Item 3 litigation summary
10 case reference(s): 1 pending, 8 settled.
Items 10, 11
Training & Operations
- Classroom training
- 53 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- POS system
- Integrated Product Suite
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Integrated Product Suite
Item 20 · call current owners
Franchisee Contacts
208 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Engel & Völkers · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Engel & Völkers franchise?
The total investment to open a Engel & Völkers franchise ranges from $177K – $424K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Engel & Völkers franchise owners earn?
Engel & Völkers does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Engel & Völkers's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Engel & Völkers (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Engel & Völkers franchise locations are there?
As of their most recent FDD filing, Engel & Völkers has 237 total units in the United States, including 216 franchised units and 0 company-owned units. 17 new units were opened in the latest reporting year.
Is Engel & Völkers a good franchise to buy?
FranchiseVerdict rates Engel & Völkers as a D-grade franchise with a risk score of 76 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.