Keyrenter Property Management Franchise Costs & Fees
Date of Incorporation: 2007
Franchising Since: 2014
Headquarters: Midvale, Utah
Business Description: Keyrenter Franchise, LLC is the franchisor. Keyrenter Property Management businesses provide full service real estate management and rental services, focusing largely on single-family homes and condominium owners, as well as related property management services such as collecting rents, signing leases, and performing and coordinating maintenance and repairs.
Franchise Offer: The franchisor offers a Standard and a Small Market franchise described as follows:
- A Standard Keyrenter Property Management franchise is identified as a franchise purchased within a centralized metropolitan area that has a population that exceeds 100,000 people.
- A Small Market Keyrenter Property Management franchise is identified as a franchise purchased within an isolated or rural metropolitan area that has a population under 100,000 people.
Financial Assistance: The franchisor prefers not to finance any part of any initial Franchise Fee. At its sole discretion, however, it will consider financing a portion of the initial Franchise Fee of any Keyrenter Property Management business (up to one-half) over a 24 month period at 10% APR, with monthly installments commencing thirty days after signing the Franchise Agreement, using the standard Secured Promissory Note. Except as disclosed above, the franchisor does not finance any fee, or arrange financing from other sources, nor does it guarantee a franchisee’s lease or any other obligation.
Training and Assistance: The franchisor provides franchisees an initial training program that covers material aspects of the operation of the franchised business. This training is offered on an as needed basis at the franchisor’s headquarters in Midvale, Utah or another location it designates. One or more assistants of the franchisee’s choosing may also attend at the franchisee’s option. Periodically, franchisees, their managers or employees must attend 1 ongoing training session and may attend additional ongoing training sessions to be conducted at the franchisor’s headquarters or another location it designates.
Territory: Franchisees will operate the franchise from one location that the franchisor approves, and franchisees may operate out of only one office. A typical territory for a Standard Keyrenter Property Management franchise will contain a population of approximately 300,000 people, though it may contain up to 1 million people, but the size will be solely determined by the franchisor. The franchisor will not place more than one Standard Keyrenter Property Management office per 300,000 people. A typical territory for a Small Market Keyrenter Property Management franchise will typically be in a rural area and contain a population of approximately 100,000 people or less, but will solely be determined by the franchisor. The franchisor will not place more than one Small Market Keyrenter Property Management office per 100,000 people.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. There is no limit on the number of times franchisees may renew for additional terms of 10 years each. If franchisees fail to meet any one of the conditions for renewal, the franchisor may refuse to renew or extend the terms of the Franchise Agreement.
Obligations and Restrictions: Franchisees are not personally required to participate in the direct operation of the Keyrenter business, but it is recommended that they do so. If franchisees are not personally involved in the direct operation of the business, the franchised business must always be under the direct, full-time, day-to-day supervision of a designated and approved manager.
Estimated Number of Units: 15
|Name of Fee||Low||High|
|Initial Franchise Fee||$15,000||$30,000|
|Business Setup Package||$1,500||$1,500|
|Office Equipment and Supplies||$1,000||$2,000|
|Furniture, Fixtures and Equipment||$500||$2,000|
|Licenses and Permits||$650||$3,000|
|Legal & Accounting||$250||$1,500|
|Dues and Subscriptions||$500||$3,000|
|Local Internet Marketing and Franchisee Website||$595||$595|
|Type of Fee||Amount|
|Royalty Fee||10% of all gross revenues if received after the Due Date for that month, otherwise, if received on time, then 7% Of Gross Revenues or $250 whichever is greater, if received by due date.|
|National Advertising and Branding Fund||1% of gross revenues.|
|Internet and Website Marketing Fee||$595|
|Local Marketing Expenditures||3% of gross revenues.|
|Keyware Software License Fee||$2 per property, purchased in increments of 50 properties, and $49 website portal fee in accordance with the Keyware Service Agreement.|
|Relocation Assistance||Approximately $750 - $1,500|
|Substitute or New Manager Training/ Additional Training||Currently $250 per day, plus the franchisee’s expenses in attending.|
|Additional Operations Assistance||Currently, $250 per day plus our expenses.|
|KeyAssist (Bookkeeping & Accounting)||$10 per unit managed per month minimum.|
|System Modification||Not more than $40,000 during the initial term of the franchise.|
|Audit Expenses||All costs and expenses associated with audit, approximately $1,500 - $5,000|
|Late Fees||1.5% per month or the highest rate allowed by the state where the franchisee located, whichever is less.|
|Approval of Products or Suppliers||$100 - $1,000|
|Customer Service||All costs incurred in assisting your customers.|
|Annual Convention Attendance Fee||$400 - $1,000|
|Insurance Policies||Amount of unpaid premiums plus the franchisor’s reasonable expenses in obtaining the policies.|
|Temporary Management Assistance||Currently, $500 per day, plus our expenses.|
|Indemnification||All costs including reasonable attorneys’ fees.|
|Cost of Enforcement||All costs including reasonable attorneys’ fees.|
The above information has been taken from the FDD of Keyrenter Property Management. Year of FDD: 2016
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