Real Property Management Franchise Costs, Fees & FDD

Year Business Began: 1986

Franchising Since: 2004

Headquarters: Waco, Texas

Estimated Number of Units: 450

Franchise Description: Real Property Management SPV LLC is the franchisor. The franchisor’s parent company is Neighborly Assetco LLC. A Real Property Management franchise permits franchisees to operate a business providing property management services, including the management of maintenance and repair services and rent collection. A Real Property Management franchise is generally granted within a metropolitan area that has a population of more than 100,000 people. However, at its discretion, the franchisor may grant a franchise within an isolated metropolitan area that has a population of fewer than 100,000 people, and for existing franchisees, it may grant additional franchises within an area that has a population of less than 60,000.
Training Overview: Franchisees will not be allowed to attend the initial training program until they have received their real estate license and sponsoring real estate broker in the state in which they are operating, the pre-training program requirements are completed, and they receive written approval to attend. Training is offered at the franchisor’s offices in Waco or Dallas, Texas, or another location it designates. A portion of the training may be conducted by a third-party software supplier and may be conducted virtually. Franchisees must designate a manager for the business and he or she must satisfactorily complete the training program before the opening of the business. Within 10 days from completion of the initial training, franchisees will begin their pre-opening support training a support specialist who will assist and guide them as they work through their business goals to open and successfully begin their franchise. In conjunction with the support training, franchisees will also receive six weeks of sales training through webinars and conference calls provided by the franchisor’s designated vendor or corporate staff. Periodically, franchisees, their managers or employees must attend one ongoing training session and may attend additional ongoing training sessions to be conducted at the franchisor’s headquarters or another location it designates. Franchisees must also attend, every year, at their expense, the annual training or conference event specified by the franchisor and currently referred to as “Reunion,” and any other training the franchisor designates as required.

Territory Granted: Franchisees will receive the right to operate a Real Property Management business at a location within a territory that meets the franchisor’s site selection guidelines. The Franchise Agreement will also specify a designated territory that will provide franchisees limited territory protection. The Franchise Agreement does not grant any territorial rights beyond the territory. A typical territory will have a population in excess of 100,000 people; however, the franchisor reserves the right to grant a territory with a population of less than 100,000. If franchisees are a current franchisee, the franchisor may grant a territory with a population of 60,000 people or less. Franchisees will maintain rights to the territory even if the population in the territory increases. Provided franchisees are in full compliance with their Franchise Agreement, the franchisor will not establish or operate more than one additional company- or affiliate-owned or franchised Real Property Management business for every 100,000 persons in the territory.

Obligations and Restrictions: If franchisees are individuals, they must directly perform or supervise the operation of the business unless the franchisor consents otherwise. If the franchisor agrees that franchisees need not personally perform or supervise operation of the business, an individual who has successfully completed the training program (a manager) must directly supervise the business, and that individual must be a bona fide manager, as determined by the franchisor. If franchisees are a corporation or other legal entity, direct, on-site supervision must be done by a designated owner who has successfully completed the training program unless the franchisor consents otherwise (a principal owner). Franchisees may be required by the franchisor or by applicable law to engage a licensed real estate broker. Franchisees must offer and sell only the goods and services that conform to the franchisor’s standards and specifications. Franchisees must offer the goods and/or services that the franchisor designates as required for all franchisees and they may elect to offer other products and/or services only if the franchisor approves them in advance.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The Franchise Agreement can be renewed for one additional 10-year term by executing the then-current form of Franchise Agreement and meeting the other requirements for renewal.

Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee for qualified prospective franchisees under specified terms and conditions. The franchisor’s decision to finance the initial franchise fee will be based, in part, on the franchisee’s creditworthiness, the collateral the franchisee has available to secure the financing and the franchisor’s then-current financing policies. The franchisor may periodically agree with third party lenders to make financing available to its qualified franchisees and it may, in its sole discretion, refer franchisees to a third party lender for financing. The franchisor does not guarantee a franchisee’s obligations to third parties. If franchisees are a United States honorably discharged veteran (as such term is defined by the franchisor in its sole discretion) who meets the qualifications for purchasing a franchise, the franchisor will discount the minimum initial franchise fee by 15%.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$59,900	$59,900
Marketing	$8,000	$32,000
Real Estate/Rent	$2,250	$9,000
Vehicle	$3,000	$5,000
Insurance	$6,250	$7,250
Equipment and Supplies	$2,500	$5,000
Training, Travel, Lodging and Food	$1,000	$3,000
Property Management Software	$1,028	$3,500
Software Technology Fee	$318	$1,300
Task Management and Lead Management Software	$300	$1,200
Licenses, Permits, Subscriptions	$750	$2,000
Legal & Accounting	$1,500	$5,000
Additional Funds (first 12 months)	$5,000	$100,000
ESTIMATED TOTAL	$91,796	$234,150

 
Other Fees

Type of Fee	Amount
License Fee	The greater of (i) 7% of non-maintenance gross sales plus 3% of maintenance revenues or (ii) the minimum license fee.
Marketing, Advertising and Promotion (MAP) Fee	2% of non-maintenance gross sales.
Local Marketing Groups	Not to exceed 5% of non-maintenance gross sales for the previous calendar year.
Minimum Local Marketing Spending	The greater of: (a) $32,000 per calendar year or (b) 5% of non-maintenance gross sales for the previous calendar year. Monthly fees for the digital marketing program are a minimum of $349 per office.
System Technology Monthly Fees	Currently $106. There are fees for additional office licenses.
Late Fees (on System Technology Fees)	$25 per month or the maximum amount allowed under law, whichever is less.
Task Management and Lead Management Software	The then-current monthly fee.
Monthly BackOffice Bookkeeping Assistance Fee	Currently $17 per property unit under management, $400 minimum. Hourly rate (currently $75/hour) applies to certain additional work.
Monthly HelpDesk Plus Fee	Currently $400 per month.
Quarterly Bank Review Fee	$350 for the first quarter; $250 for every quarter thereafter.
Fine for Marketing Outside of Territory	$500 per violation.
Annual Convention/Reunion Fees	Currently $1,000.
Transfer Fee	$10,000
Late Fees	$10 per day.
Dishonored Check or ACH Draft	$50
Interest	12% on unpaid balances.
Failure to Maintain Insurance	The franchisor’s actual costs for insurance premiums and a reasonable fee for expenses it incurs.
Audit	Cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees.
Audit Noncompliance Fee	$500 per document (up to $2,500 per audit) that the franchisee fails to timely make available to the franchisor in connection with an audit; and/or: cost of audit, if audit is rescheduled due to the failure to cooperate with the audit.
Renewal Fee	$3,000
Amendment Fee	$300
Supplemental Training	Currently, $250 per day, plus the franchisee’s costs and expenses in attending.
Ongoing Training	Currently $600 - $1,500 (depending on location of training and number of days of training).
Indemnification and Attorneys’ Fees and Costs	Varies according to loss.
Tax Reimbursement	Varies according to tax.

The above information has been compiled from the FDD of Real Property Management. Year of FDD: 2025.
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