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Engel & Volkers Franchise ProfileReal Estate Franchises > Residential Brokerage |
Investment Overview for Engel & Völkers Franchise
The Engel & Völkers franchise requires an initial investment ranging from $91,690 to $423,592, which includes a franchise fee of $35,000. Potential franchisees should have a cash reserve of $35,000 to $150,000 and meet a net worth requirement of $300,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchise owners to ensure they are adequately prepared for the investment.
Revenue Potential of Engel & Völkers Franchise
The average annual revenue per Engel & Völkers unit is approximately $98,000, with a median of $85,000. While the lowest reported annual revenue is $60,000, some units have achieved extraordinary revenues, with the highest reaching $30,358,779. This wide range highlights the potential for profitability, but it also underscores the importance of location and operational effectiveness.
Ongoing Fees and Financial Obligations
Franchisees are subject to a royalty fee of 6% on gross sales and a marketing fee of 2%. These ongoing fees are essential for maintaining brand standards and supporting marketing efforts. Being aware of these financial obligations is vital for franchisees to manage their cash flow and ensure long-term success in the Engel & Völkers network.
Performance Metrics and Breakeven Analysis
Engel & Völkers franchises typically reach breakeven within 12 months, with an investment payback period of around 24 months. These performance metrics provide valuable insights for potential franchisees, indicating that with effective management and market positioning, they can expect to recover their initial investment in a relatively short timeframe, contributing to a sustainable business model.
Engel & Volkers Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Engel & Volkers Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 152 | 168 | 176 |
| Net Change YoY | 16 | 8 | |
| Franchised Units | 152 | 168 | 176 |
| Net Change YoY | 16 | 8 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Engel & Völkers franchise requires a range of initial investments, with costs ranging from $91,690 to $423,592. The initial franchise fee is set at $35,000, which grants new franchisees access to the brand's established reputation and support systems.
Financial Requirements
To qualify for an Engel & Völkers franchise, potential franchisees must have a cash requirement of $35,000 to $150,000 and a net worth between $300,000 and $1,000,000. These financial benchmarks are designed to ensure that franchisees are adequately prepared for the investment and operational demands of the business.
Revenue Potential
Engel & Völkers franchises demonstrate promising revenue potential, with an average annual revenue of $98,000 per unit and a median of $85,000. The revenue figures highlight the brand's strong market presence and the opportunity for franchisees to achieve significant earnings.
Franchise Growth
The Engel & Völkers franchise has shown steady growth in its number of franchised units, increasing from 152 in 2021 to 176 in 2023. This growth indicates a positive reception of the franchise model and a growing demand for its services in the real estate market.
Operational Support
Franchisees benefit from comprehensive operational support, which includes marketing assistance and ongoing training. Engel & Völkers provides resources to help franchisees navigate the real estate landscape effectively, ensuring they can maximize their business potential.
Profitability Timeline
The average breakeven time for Engel & Völkers franchisees is approximately 12 months, with an investment payback period of around 24 months. These timelines suggest that franchisees can expect a relatively quick return on their investment, making the franchise an attractive opportunity for new investors.
Frequently Asked Questions
The initial investment for an Engel & Volkers franchise ranges from $91,690 to $423,592, which includes the franchise fee and other startup costs.