Date of Incorporation: 1979
Franchising Since: 1979
Headquarters: Parsippany, New Jersey
Business Description: Century 21 Real Estate LLC is the franchisor of the world's largest residential real estate sales organization, providing comprehensive training, management, administrative and marketing support for the Century 21 System. The franchise is for a real estate brokerage offering with defined real estate brokerage services from a specified location under the name Century 21.
Franchise Offer: Franchises are granted to existing real estate brokerage businesses and to persons who want to start a real estate brokerage business. The franchise authorizes the franchisee to operate a real estate sales office using the Century 21 service mark and other trademarks, service marks, designs, logos and other commercial symbols periodically designated, and using a system that has been developed which includes marketing and advertising tools, training, real estate referral and broker communications procedures, various operational assistance and other items. Small Market Franchises may be offered for real estate offices in small towns or rural areas.
Financial Assistance: Neither Century 21 nor any related company are obligated to provide the franchisee with any financing. Century 21 or a related company, however, have the right to offer the franchisee financing based on several factors including without limitation the franchisee’s financial need, credit history, ability to repay, net worth, stability, the strength of his or her business plan, as well as Century 21’s need for the development of the franchisee’s market area. Century 21 has the right to require the franchisee to furnish financial statements, tax returns and other documents. The terms of any financing are open to negotiation between the parties. Century 21 has the right to finance up to 100% of the initial franchise fee if the franchisee meets the credit standards. Century 21 or a related company has the right to grant the franchisee start-up marketing and promotional allowances or provide similar financing for the new Century 21 office.
Training Assistance: Training is conducted in Parsippany, New Jersey, or at other locations as Century 21 may choose. On the job training is not provided. Other sales training programs are also held on a periodic basis for Century 21 brokers and sales associates at locations the Century 21 selects or through online courses. These programs may be on a variety of topics, sessions, and Century 21 may choose to charge the franchisee a fee to attend these programs.
Territory: The franchisee will be granted an exclusive territory for the area within a 1/4-mile radius (as the crow flies) from the franchisee’s office(s). The franchisee must operate his or her franchised business only from the office(s) identified in the Franchise Agreement. No franchisee is prohibited, however, from seeking listings or buyers in any area.
Term of Agreement and Renewal: The length of the franchise term is 10 years. There are no renewal rights. Franchise Agreement will automatically be extended for 10 years if the franchisee applies for and is approved to operate a branch location.
Obligations and Restrictions: The franchisee, if an individual and obtaining the franchise as a sole proprietor, or the Owners, if the franchisee is an entity, must participate in the management of the franchised business. The franchisee or Office manager(s) must maintain a valid real estate broker license (or the franchisee must retain a Responsible Broker for this purpose) and comply with all applicable laws, rules and regulations. The Office manager(s) must attend training, but do not need to have equity interest in the business. The franchisee will require all management personnel, including the franchisee’s Responsible Broker and manager to treat as confidential all Century 21 trade secrets and proprietary information. Century 21 also recommends that they agree not to compete with the franchisee or the Century 21 system while employed by the franchisee.
Estimated Number of Units: 7,500
|Name of Fee||Low||High|
|Initial Franchise Fee||$10,000||$25,000|
|Real Estate and Improvements||Not included in total||Not included in total|
|Equipment/Fixtures (Not Required)||$0||$122,332|
|Advertising (3 Months) NAF fees||$1,953||$4,524|
|Other Advertising (Not Required) (3 months)||$0||$25,000|
|Brokers Council Fees and Assessments (3 Months)||$105||$1,500|
|Insurance Deposits and Premiums||$300||$5,000|
|Additional Funds (3 Months)||$1,548||$268,129|
|TOTAL (does not include real estate costs)||$22, 343||$528,285|
|Name of Fee||Amount|
|Royalty Fee||6% of your Gross Revenue|
|Minimum Monthly Royalty Fee||$500 per month|
|Brokers Council Fees||Varies by location|
|National Advertising Fund ("NAF") Fees||2% of monthly Gross Revenue, subject to a monthly minimum and maximum ($651/$1,508 through May 31, 2012).|
|Lead Router Fees||$375 - $5,000 per year|
|International Management Academy ("IMA") Fee||$1,800 per attendee. Fee includes tuition, lodging and function meals.|
|Other Training Fees||Vary by course and duration|
|Audit Fees||Cost of audit plus fees past due, interest, late charges and costs.|
|Liquidated Damages||The combined monthly average of Royalty Fees, advertising contributions, and any other fees under the Agreement (without regard to any fee waivers, rebate or other reductions) payable from the Opening Date through the date of early termination, multiplied by the lesser of (i) 36 or (ii) the number of full months remaining in the Term.|
|Special Assistance||As negotiated|
|Late Charges and Interest||All past due payments will bear interest at the highest legal rate (not to exceed 1.5% per month) plus the highest allowable legal late charge.|
|Administrative Fees - Financing||$7,500|
|Costs and Attorney Fees||Will vary|
|Relocation/Improvement Fees||Will vary|
|Insurance||Cost of insurance|
|Product/Service Fees||Will vary|
|Elective Programs||Will vary|
|Testing/Inspection Fees to Approve Supplier||$0 - 500|
|Expanded Location Fee||$1,000|
|International Convention Registration Fee||$499-699 for Convention, depending upon when franchisee registers a discount may be available.|
|Computer Hardware and Software Maintenance and Support||$5,000 to $10,000 or more per year|
The above information has been compiled from the FDD of Century 21 along with online sources. Date of FDD: 2011.
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