Franchising Since: 2013
Headquarters: Irvine, California
Estimated Number of Units: 1,600
Franchise Description: The franchisor is BHH Affiliates, LLC. Franchisees establish and operate a Berkshire Hathaway HomeServices residential real estate brokerage business. The business will be operated from an office or offices, under an existing real estate broker’s credentials, and franchisees promote and support customer acquisition, a professional referral system, and advertising and public relations for its real estate sales associates.
Training Overview: Pre-launch initial assistance will be available by phone and webinar for approximately 18-22 hours. The franchisor will deliver launch event and post-launch training and orientation for integration into the system to the general manager, senior management staff, administration, location managers and sales professionals at a location determined by the franchisor or via an online meeting or other means of electronic communication selected by the franchisor. This initial training and orientation is referred to as the franchise integration training. The length and scope of franchise integration training will depend on the size of the franchisee’s business and the range of tools that the franchisee is interested in. While not mandatory, the franchisor also provides ongoing and refresher training delivered by the global network training team and the network service business consultants.
Territory Granted: The Franchise Agreement does not grant franchisees an exclusive territory. Franchisees may face competition from other franchisees, from outlets the franchisor may own or operate in the future, or from competitive brands that the franchisor may control or that are otherwise owned or operated by an affiliate of the franchisor. A protected territory may be provided by a written amendment to the Franchise Agreement. Some of the factors the franchisor will consider before granting a protected territory include the franchisee’s reputation in the marketplace, the size, market share and expected gross revenues of the existing real estate business and the benefit of having the franchisee as a part of the system. If the franchisee grants a protected territory the size of the territory may be delineated by the boundaries of a county or by zip code(s), depending on the circumstances. There is no minimum protected territory, however. If the franchisor grants franchisees a protected territory in a written amendment to their Franchise Agreement, they will be required to meet certain stated levels of performance in order to maintain the protection.
Obligations and Restrictions: In accordance with state laws, franchisees must appoint a supervising real estate broker to supervise their BHHS brokerage. If franchisees are a corporation, partnership, or limited liability company, each of the owners with more than a 10% direct or indirect equity interest, as well as their spouses, must sign a nondisclosure, noncompetition and nontransfer covenant and personal guaranty. The franchisor requires that franchisees offer only those services that it has approved. Franchisees may only offer those services that the franchisor designates as set forth in the Franchise Agreement and the operations manual, unless the franchisor agrees otherwise in writing.
Term of Agreement and Renewal: The length of the initial franchise term is typically from 10 to 15 years as mutually agreed to by the franchisee and the franchisor. There are no renewal rights.
Financial Assistance: The franchisor or its affiliate may finance a portion of the initial franchise fee or conversion costs. Other than as described, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
Investment Tables:
The above information has been compiled from the FDD of Berkshire Hathaway HomeServices. Year of FDD: 2023.
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| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee ($2,500 for each additional location) | $25,000 | $25,000 |
| Launch and Post Launch Training | $100 | $2.500 |
| Exterior Signs | $1,000 | $20,000 |
| Stationery and Related Supplies | $2,000 | $5,000 |
| Yard Signs | $5,000 | $10,000 |
| Grand Opening Advertising | $5,000 | $5,000 |
| Computer Hardware | $1,000 | $4,000 |
| Approved Broker Management System (computer software) | $3,000 | $5,000 |
| Approved Software Support Expenses | $100 | $1,000 |
| Business Class Telephone Service | $20 | $50 |
| Business Class Internet Access | $50 | $300 |
| Real Property (whether purchased or leased) | $0 | $6,000 |
| Furniture, Fixtures & Equipment | $0 | $5,000 |
| Business Insurance | In excess of $1,000 in most cases. | |
| Agent Commissions | Prevailing commissions in the franchisee’s geographical area. | |
| Additional Funds – 3 months | $30 | $525 |
| ESTIMATED TOTAL | $45,300 | $90,375 |
| Type of Fee | Amount |
|---|---|
| Continuing Royalty | Declining percentage of gross revenue or, after the first year of operations, the greater of the stated percentage of gross revenue or $15,000. |
| Marketing Fee | Declining percentage of gross revenue, with a monthly minimum of $500. |
| Referral Fee | $750 to $7,500 |
| Additional Location Fee | $2,500 |
| Restricted Purpose Location Fee | $1,000 |
| Sales Convention Registration Fee | Standard registration fee for 1 person: $569 to $600. |
| Examination Fee | All costs incurred by the franchisor in connection with the cancellation, by the franchisee, of an examination of the franchisee’s books and records or a finding of an understatement of gross revenue. |
| Indemnification | Will vary based on circumstances. |
| Attorney’s Fees | Will vary based on circumstances. |
| Fees Connected with Cure of Defaults | Costs incurred if the franchisor cures a default for the franchisee. |
| Late Fee | 12.5% per annum or the highest rate permitted by law, whichever is lower. |
| Transfer Fee | $1,000, plus reimbursement of the franchisor’s direct costs associated with the request. |
| Transfer Fee (with public offering) | $10,000 plus reimbursement of all of the franchisor’s expenses including legal fees. |
| Optional: Orion Commercial Real Estate Subscription Fee | $3,500 - $4,500 per year payable to third party vendor, HSF. |
| Optional: kvCORE CRM Platform | $2,500 initial setup fee payable to HSF. $1.50 per month per sales professional payable to HSF. |
Franchise Direct's Disclaimer
You can click the following link to view all available real estate franchise opportunities here on Franchise Direct.