Engel & Völkers Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Engel & Volkers is a luxury residential real-estate brokerage franchise with a global, premium brand. Franchisees run high-end shops recruiting advisors and marketing luxury properties, earning from commissions.
FranchiseVerdict summary · 2026
A Engel & Völkers franchise requires a total initial investment of $92K – $424K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $92K – $424K
- 64th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 24th pct Real Estate
- Units
- 190
- 64th pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $92K – $424K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 59/100 (higher is better).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Engel & Völkers Americas, Inc.
- Parent company
- Engel & Völkers Residential GmbH (E&V Residential)
- Ultimate parent
- Permira VII Inv. Platform S.à.r.l
- CEO title
- President and Chief Executive Officer
- Stuart Siegel
- Incorporated in
- DE
- HQ
- 430 Park Avenue, 11th Floor, New York, NY 10022
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $27.9M
- vs $26.2M prior year
Overview
About
- CEO
- Stuart Siegel
- Headquarters
- NY
- Founded
- 2005
- FDD year
- 2025
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost runs 18% above the typical real estate franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 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
- $92K – $424K
- Middle of category vs category
- Liquid capital req'd
- $50K – $150K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 6.0%
- Tiered by sales volume · 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 |
| Training fee | $690 |
| Transfer fee | $3K |
| Renewal fee | $18K |
| Inventory (initial) | $3K – $8K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Engel & Völkers makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Engel & Völkers unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Real Estate average).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 8.0% CAGR over 3 years across 190 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Real Estate averages
How Engel & Völkers Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 190
- Opened
- 9
- Last reporting year
- Closed
- 15
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.1%
- Net unit change over 3 years
- 3-yr CAGR
- +8.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 9
- Closed (3yr)
- 11
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
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 loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $1.2M
- Median loan
- $154K
- average
- Charge-off rate
- N/A
- limited sample (8 loans) — rate not shown below 10
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
- 7
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
3 pending cases (antitrust class actions re broker commissions: Gibson consolidated / Lopez), 1 pending (EVFL v. EVA breach of contract); 4 concluded cases. Settled Gibson for $6.9M and Lopez for $800K.
Largest disclosed settlement: $6,900,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenues comprise total franchise revenues (franchise royalties, marketing and brand advisor fees, admission fees) of $25,200,315 plus fees from other services of $2,664,353 for FY2024 (consolidated, Engel & Volkers Americas, Inc. and Subsidiary).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 59 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rightsℹ | Granted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (miles)ℹ | 75 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 7 |
View Item 3 litigation summary
3 pending cases (antitrust class actions re broker commissions: Gibson consolidated / Lopez), 1 pending (EVFL v. EVA breach of contract); 4 concluded cases. Settled Gibson for $6.9M and Lopez for $800K.
Items 10, 11
Training & Operations
- Classroom training
- 53 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual web-based platform or at a U.S. location designated by franchisor
- Ongoing training
- Required
- Site selection
- Franchisee selects; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- 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 $92K – $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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Engel & Völkers FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Engel & Völkers FDD and qualifies whose outlets they describe.
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 190 total units in the United States, including 190 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is Engel & Völkers a good franchise to buy?
FranchiseVerdict rates Engel & Völkers as a B-grade franchise with a verdict score of 59 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.