Keller Williams Realty Franchise Costs, Fees & FDD

Year Business Began: 1983

Franchising Since: 1987

Headquarters: Austin, Texas

Estimated Number of Units: 1,125

Franchise Description: Keller Williams Realty, LLC is the franchisor. The franchisor has developed a distinctive business system that involves the delivery of real estate brokerage services and other services through “Keller Williams Realty” market centers.
Training Overview: Before the franchisor approves the franchise application, the operating principal, team leader, market center administrator, each of the franchisee’s principals and certain other members of the franchisee’s group the franchisor designates must attend Franchise Systems Orientation. Franchise Systems Orientation is conducted at a location in Austin, Texas, virtually, or another location the franchisor designates. After the Franchise Agreement is signed, the operating principal, team leader and market center administrator must also participate in between 6 to 18 months of classroom and on-the-job training at a location in Austin, Texas or another location the franchisor designates, although it may reduce or extend the duration and extent of the training based on the operating principal’s, team leader’s and/or market center administrator’s experience and progress. The operating principal, team leader, market center administrator and other members of the franchisee’s group must attend and complete, to the franchisor’s satisfaction, any additional courses, seminars, conferences and other training programs, including, additional or refresher courses, as it may require from time to time.

Territory Granted: The Franchise Agreement grants franchisees the right to operate a market center at a single location in the awarded area the franchisor grants, which the franchisor must approve in writing in advance. The awarded area usually encompasses a portion of a city, county or an unincorporated area. The initial boundaries of the awarded area are determined based on the historical annual gross sales reported by real estate brokers in the area in which the market center is to be located. The franchisor also has the right to adjust the size of the awarded area at any time during the term of the Franchise Agreement if, in its sole business judgment, the awarded area is found to encompass an area that holds an annual sales potential equivalent to substantially more than 1,000 sold units times the average sales price of residential property in the awarded area during the 12 months preceding the measurement date as reported by the local MLS. However, during the term of the Franchise Agreement and for so long as the franchisee in full compliance with the terms and conditions of the Franchise Agreement, the franchisor will not operate or authorize any other person or entity to operate a bricks and mortar market center inside the awarded area.

Obligations and Restrictions: Franchisees must form a business entity such as a corporation, partnership or limited liability company to sign the Franchise Agreement. The business entity must be newly created solely for the purpose of operating a market center and not have conducted any prior business. Franchisees must designate and retain at all times an individual to serve as the operating principal of the market center. Franchisees must designate the original operating principal in the franchise application. The operating principal must meet certain qualifications during the entire period the individual serves as operating principal. Franchisees must use the market center solely as a base of operations for a Keller Williams real estate brokerage business and the delivery of any related authorized services. Franchisees must maintain business hours as provided in the brand standards manuals or as the franchisor may specify from time to time in writing. Franchisees may not use or permit the use of the market center premises for any other purpose or activity at any time without first obtaining the franchisor’s written consent. If franchisees choose to conduct commercial real estate operations, the franchisor must first approve and then sign a commercial real estate addendum.

Term of Agreement and Renewal: The length of the initial franchise term is five years. Franchisees are eligible to apply for additional consecutive 10-year renewal terms pursuant to the then-current Franchise Agreement.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee any of a franchisee’s notes, leases or obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial License Fee	$35,000	$35,000
Other Initial Fees	$430	$1,447
Broker License	$1,500	$5,000
National Association of REALTORS® Fee	$250	$500
Local Real Estate Board Fees	$250	$1,500
Local MLS Memberships	$100	$250
Insurance	$5,000	$15,000
Initial Lease and Utility Deposits	$3,500	$10,000
Leasehold Improvements	$5,000	$50,000
Office Furniture, Equipment, Phone and Computer Systems	$40,000	$110,000
Exterior Signs	$5,000	$10,000
Office Supplies	$3,900	$7,000
Professional Fees	$5,000	$10,000
Advertising	$2,500	$5,000
Additional Funds – 3 months	$75,000	$75,000
ESTIMATED TOTAL	$182,430	$335,697

 
Other Fees

Type of Fee	Amount
Production Royalty	6% of monthly gross commission income.
Profit Sharing Contribution	A portion of the franchisee’s monthly profit (only the amount to which the profit sharing contribution relates), if any.
Marketing Development Fee	Currently, $83.33 per month, but can be increased to $150 (or $1,000 per calendar year up to $1,500).
Training Fees	Range from $60 to $2,500 per course and total approximately $10,200.
Regional Advertising Cooperative	Up to 0.5% of monthly gross commission income.
International Advertising Fund	Up to 0.5% of monthly gross commission income.
Franchise Systems Orientation Fee	Currently, $399 per person.
New and Annual Associate Fees	Currently $25 per year per associate, but can be increased up to $40 per year per associate.
Late Transmittal/Closing Fee	$500 for each day a required report is late.
Associate Technology Fee	Currently $65 per month per associate but can be increased up to $150 per month. This fee may be charged as two separate fees so long as it does not exceed the maximum fee per month per associate.
G-Suite Fee	Currently $5 per agent per month but can be increased up to $10 per month.
Transfer Fee	Currently $2,000 non-refundable plus the franchisor expenses related to the transfers of direct or indirect ownership interests in the franchisee entity; the franchisor’s cost for documenting approved transfers by or among market center equity interest holders.
Successor License Fee	10% of then-current initial franchise fee or $5,000, whichever is less.
Offering Fee	$10,000 or amount of the franchisor’s expenses for review, whichever is greater.
Holdover Fee	An additional 2% of gross revenues on top of the standard production royalties.
Liquidated Damages for Premature Closure during Holdover Period	An amount equal to the production royalties the franchisee paid to the franchisor (or should have paid to the franchisor) in the six months prior to closing the market center.
Interest	18% or maximum rate permitted by law, whichever is less.
Late Payment Fees	$500 for each day a payment is late.
Accounting Fees	Cost of audit.
Relocation Services Fee	Between $100 and $300.
Business Center Fee	$2,500
Mega Associate Office Fee	$2,500
Non-REALTOR® Permitted Business Fee	Currently $0 but can be increased up to $2,500.
Referral Associate Permitted Business Fee	Currently $0 but can be increased up to $2,500.
MC Operating Software License Renewal and Upgrade Fees	Up to $1,500 fee; upgrade costs range from $100 to $1,500.
Connect Fee	Currently $500 per month but can be increased up to $1,000 per month.
Accounting Software Upgrade and Maintenance Fee	Currently $325 per year plus sales tax but can be increased up to $1,000 per year.
KPA Fee	Currently $500 per month.
Research and Development Fees	Currently no fee to franchisees.
Deficiency Correction Fees	The franchisor’s costs.
Indemnification	Varies according to loss.
Attorney’s Fees and Related Costs	Damages, costs, expenses, and reasonable attorney fees.
Technology Fee	Currently $79 per month but can be increased up to $300 per month.
Conventions Assessment	Up to $1,000 per year.
KW Prep + Continuing Education (optional)	Currently $199 per month but can be increased up to $1,000 per month.
KSCORE (optional)	Currently $599 per month but can be increased up to $2,000 per month. Additional $199 per month for adding a 3rd administrator or adding a second state offering.
Force Majeure	Payment of agreed minimum fees.
New Developments in Technology and New Offerings Fee	Currently $0 but can be increased up to $1,000 per year.
Liquidated Damages for Failure to Comply with Post-Termination Obligations	$500 per day for each day that franchisees fail to perform their post-termination obligations.
Lost Profits	Varies. Payable in connection with any premature termination of the Franchise Agreement other than via mutual consent of the parties.

The above information has been compiled from the FDD of Keller Williams Realty. Year of FDD: 2025.
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