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.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Engel & Völkers unit return on the cash you put in?
Unlevered ROIC · per unit
28%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 56 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
88 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Engel & Völkers · FDD (2025) PDF