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Realty World Franchise Cost & Fees

Date of Incorporation: June 12, 1997

Franchising Since: June 2000

Headquarters: California

Country: USA

Description: The franchise is offered for the operation of a real estate brokerage business under the name "Realty World®".

Franchise Offer: The franchisor has developed a network of real estate brokerage businesses known as "Realty World" businesses. The franchisor uses, promotes, and licenses certain trademarks, service marks, and other commercial symbols in operating Realty World® Businesses, and may create, use and license other trademarks, service marks, and commercials for Realty World® Businesses.   Realty World® Businesses offer the products and services franchisor authorizes and using the business formats, methods, rules, procedures, signs, designs, layouts, standards and specifications.

Financial Assistance:
Under some circumstances the franchisor may permit a franchisee to pay the initial franchise fee over a period of time not exceeding 6 months, by way of monthly, bi-monthly or quarterly instalments. In such cases the franchisee has to pay interest on the outstanding balance at a rate equal to the lesser of 15% per annum or the highest commercial contract interest rate the law allows. The franchisee may prepay the outstanding balance at any time without penalty. The franchisor does not offer direct or indirect financing arrangements and does not guarantee note, lease, or other obligations.

Training and Assistance: The franchisor will train the Designated Manager on the material aspects of operating a Realty World Business and will provide approximately 1-3 days of training. The franchisor provides initial training for no additional fee for 2 persons. The franchisee will be responsible for the employee's travel and living expenses, wages and workers' compensation insurance while attending training.

Unless the franchisor offers an exclusive territory under the form of Exclusive Territory Addendum, the franchisee will not receive an exclusive or protected territory.

Term of Agreement and Renewal: The length of the franchise agreement is for 7, 10, 15 or 20 year term. Renewal or extension of the term is for of 7, 10, 15 or 20 years.

Obligations and Restrictions: The franchisee need not personally supervise the Business or attend training. The franchisee shall designate a manager to be the point of contact between the franchisor and the Business. Because every state requires that a real estate brokerage be directly supervised by a broker of record who meets its real estate licensing requirements, the franchisee must designate a broker of record.

Total Number of Units:
301 franchised outlets at the end of the year 2007
Investment Tables:

Initial Investment:

Name of Fee Low High
Initial Franchise Fee $18,000 $50,000
Building Signs $700 $15,000
Yard Signs $1,000 $5,000
Start-up Supplies $1,000 $10,000
Insurance, including General Liability, Errors & Omissions $500 $2,000
Total $21,200 $82,000


Ongoing Fees:

Type of Fee Amount
Basic Office Fee $750 per month
Sales Representative Fees for each Sales Representative:

Flat Fee Option

Percentage Fee Option   
$125 per month

monthly fee of 5% of Gross Revenue generated by the Sales Representative (only available after 10 Sales Representatives are on the Flat Fee Option)
National Advertising and Promotional Fund Contribution -Basic Office Contribution $150 per month
National Advertising and Promotional Fund Contribution -Sales Representative Contribution for each Sales Representative:

Flat Fee Option

Percentage Fee Option   

$25 per month for each Sales Representative

1% of Gross Revenue generated by the Sales Representative
Regional Agents Marketing Board Contributions - Basic Office Contribution Flat Fee Option
Regional Agents Marketing Board Contributions - Sales Representative Contribution
$100 per month

$30 per transaction closed for the first 12 transactions consummated by each Sales Representative during each calendar year
Late Fees $50 per day or maximum amount the law allows
Late Reporting of Sales Representatives $250
Renewal Fee $1,500
Transfer Fee $3,500
Registration Fee Annual Awards Convention Varies. Currently, registration fee estimated at $250
Initial Training Fee    Currently $299
Ongoing Training-Realty World® Academy Currently $59 to $249 per course
Annual Realty World Website Membership Registration Fee Varies. Currently, Annual fee estimated at $180 per office
Move In and Out Membership Fee Currently $40 per annum
Costs and Attorneys' Fees Will vary under circumstances
Indemnification Will vary under circumstances
Audit Cost of audit including the charges of any attorneys and independent accountants, travel expenses room and board and compensation of employees.  However the audit fee charged will not exceed the amount charged by the auditors to conduct the audit.
Remodelling It will depend upon the existing conditions of the office, and the amount charged by the vendor.




The above information has been taken from the UFOC/FDD of Realty World.
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