Frequently Asked Questions

The following questions and answers should provide you with additional information on our franchise system and how to establish a real estate agency. It covers frequently asked questions around franchise areas, Engel & Völkers' unique selling points, required real estate experience, costs and expenses as well as the further communication process.

Since when has Engel & Völkers been a franchise company?

Engel & Völkers was founded in 1977 as a real estate agency in Hamburg. 20 years later, in 1997, our international expansion started based on our unique franchise system. Today, more than 900 franchise shops in 32 countries on 5 continents operate in our name. As a result, Engel & Völkers is nowadays one of the world’s leading corporations specialised in selling and renting premium properties, yachts and private jets.

What are Engel & Völkers’ USPs?

• Individualised Farming tools according to our Corporate Identity to combine the advantages of your local expertise and our global brand recognition
• Our one-of-a-kind agent support platform offering comprehensive support for your agents in every single step of the selling process
• International network giving you the opportunity to refer your search clients to other areas and countries as well as receiving leads from partners all over the world regarding your portfolio
• Advanced and tailored trainings for you and your agents in our own Academy
• More than 30 years of experience in franchise operations in the premium real estate market

Do I need previous real estate experience?

No. Our franchise concept is made for newcomers as well as for old stagers. Engel & Völkers provides its partners with optimized training conducted by its very own academy offering a variety of courses for franchisees, real estate agents and assistants. Therefore, more important than real estate expertise are a comprehensive understanding of the local market and people as well as entrepreneurial skills.

How do you define the franchise area?

When it comes to defining the franchise areas, we are working closely together with our future partners taking into account their individual preferences and the market data. Together we will define your franchise area - adjusted to market size, transaction volume, geographical conditions and population density - within which you will be the only franchisee with exclusive rights.

Will other Engel & Völkers partners be able to operate in my franchise area?

Engel & Völkers’ grants its franchisees the exclusive right to operate their own licence area under either the Residential, Commercial, Yachting or Aviation-brand. That means every franchise area is protected, so that only the respective franchisee is entitled to sell and let properties in this area under the corresponding sub-brand. If other partners outside this area have a customer interested in selling or letting their property in your area, they will convey this information to you.

How much does a real estate agency cost?

The seed capital depends on the country and region. In Europe we calculate the investment to start from €150,000 possibly going up to €300,000, depending on the status quo of the office space and the necessary construction or renovation work. The main cost drivers in this figure are the following:

• One time franchise fee of € 32,500 (including trademark and exclusive rights in licensed area) 
• Initial Academy Fee of € 7,500 and Initial Interior Design Fee of € 2,500 
• Shop fitting - highly variable, depending on shop size, location and characteristics
• Ramp-up capital

What is the period of the franchise agreement and what do I have to pay Engel & Völkers during the term of the cooperation?

The agreement will be in force for a term of 10 years, and besides the initial fee, our franchise concept is based on royalties of 12.5% on any net commission you earn resulting in a performance-related fee.

What do I get in return for 12.5% royalties?

• Operational support (daily business, recruiting etc.) 
• Access to all marketing and farming tools (online & offline) 
• Access to our intranet (documents & information regarding processes, best practices etc.) 
• IT service/support and state-of-the-art apps as well as services for your agents 
• Access to an exclusive and worldwide network for your cross-selling and referral business 
• Advanced training opportunities for all staff members conducted by our own academy

When will I be able to open my office, and will you help me find the right shop?

After signing the agreement our mutual aim should be to open your shop within 3 - 6 months. In this interim period you will be able to complete the basic training at our Academy.

Our experienced Office fitting and architecture team will assist you in finding the right Office Space and support you comprehensively in building it up according to our Corporate Identity.

What will the ramp-up phase of my business look like?

To assure quick and sustained profits for you as well as for Engel & Völkers, we will assist and advise you closely during your business’ ramp-up phase. Based on our experience, you will develop a strategy for market entry including a marketing plan together with our regional manager. In the process of developing the marketing plan you will come to know our various marketing tools in detail.

What does the further communication process look like?

• First contact E-Mail or Landing Page – First information and call scheduling
• First call: Detailed discussion – Region of interest and requirements 
• Meeting Headquarter Hamburg: Complete presentation of system, brand and services 
• Second Meeting Headquarter: Presentation of own franchise concept and business plan 
• Third and Fourth Meeting: Contract details and signing of the contract