Century 21 Franchise Costs, Fees & FDD

Year Business Began: 1971

Franchising Since: 1972

Headquarters: Madison, New Jersey

Estimated Number of Units: 11,000

Franchise Description: Century 21 Real Estate LLC is the franchisor. The franchisor operates as a subsidiary of Anywhere Real Estate Services Group LLC (f/k/a Realogy Services Group LLC). The franchisor offers franchises for real estate sales offices in the United States to owners of existing real estate brokerage businesses and in certain situations the franchisor may offer a franchise to newly formed real estate brokerages.
Training Overview: The initial session of the International Leadership Academy (ILA) Program is conducted live and in-person and will be held at a location in the United States of the franchisor’s choice. The entire program spans the course of one calendar year with subsequent sessions facilitated virtually. Franchisees, or their designee approved by the franchisor, are required to attend the ILA Program within 24 months after signing the Franchise Agreement. The franchisor does not provide on the job training. During the operation of the franchised Century 21 office, the franchisor will provide continuing assistance to franchisees with respect to improvements and changes to the Century 21 system. Guidance may be in the form of bulletins or other written materials, electronic communication, consultation by telephone or in person at a franchisee’s office, or by other means. The franchisor will also hold other education programs or networking events on a periodic basis for Century 21 brokers and independent sales associates at locations it selects or through online courses.

Territory Granted: Franchisees must operate their franchised business only from the office(s) identified in the Franchise Agreement. The franchisor will not grant another Century 21 franchisee a location within a 1/4-mile radius (as the crow flies measured between exterior office walls) from the franchisee’s office(s). No franchisee is prohibited, however, from seeking listings or buyers in any area.

Obligations and Restrictions: Franchisees, if they are 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 franchise. Franchisees must retain a “responsible broker” (as defined in the Franchise Agreement) and they, their office manager(s) and their responsible broker must comply with all applicable laws, rules and regulations. Each equity interest holder in the franchise must sign a Guaranty of Payment and Performance. The franchisor has the right to require a spouse not party to the Franchise Agreement to sign a personal guaranty as well. The Franchise Agreement defines the real estate brokerage services franchisees may provide under the marks. These defined services may be more limited than the scope of activities permitted under most state real estate licensing laws. Franchisees may be permitted to engage in real estate related excluded businesses, with the franchisor’s prior written consent. Franchisees are required to meet certain quality service standards that the franchisor may establish periodically, and their customer service may be monitored through a client survey developed by the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the opening date. However, the franchisor has the right to negotiate with franchisees for a greater or lesser term under the Franchise Agreement. There are no renewal rights. If the franchisor grants franchisees an additional term, it may require them to sign the then current franchise agreement or a Term Extension Addendum with materially different terms.

Financial Assistance: Neither the franchisor nor any related company is obligated to provide the franchisee with any financing. The franchisor or a related company, however, has the right to offer franchisees financing to assist with conversion costs or growth opportunities. This financing will be based on several factors including without limitation the franchisee’s financial need, credit history, ability to repay, net worth, stability, as well as the franchisor’s need for the development of the franchisee’s market area. The franchisor 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. The franchisor or a related company currently offers two types of financing in the form of promissory notes.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$0	$25,000
Real Estate and Improvements	Not included in total
Leasehold Improvements	$0	$105,000
Computer Equipment and Electronic Data System	$5,000	$10,000
Signs - Exterior	$700	$20,000
Yard Signs/ Posts/ Frames	$5,200	$10,000
Open House Signs	$800	$2,000
Miscellaneous Rider Signs	$200	$400
Name Badges (approx. 7 to 70)	$120	$400
Miscellaneous	$250	$500
Other Advertising, including Grand Opening Promotion	$0	$10,000
Legal Expenses	$0	$4,000
Office Supplies and Stationery	$5,100	$7,500
Website	$0	$30,000
Multiple Listing Services	$0	$3,000
Data Fees Transmission	$0	$5,000
International Leadership Academy (ILA)	$1,800	$2,200
Insurance Deposits and Premiums	$500	$4,000
Additional Funds (3 months)	$15,000	$40,000
ESTIMATED TOTAL FOR CONVERSION OFFICE	$34,670	$279,000
Additional Fees for Start-Up Office
Facility and Space Planning	$9,000	$17,500
Security and Other Deposits	$7,500	$17,700
Furnishings and Communications Equipment	$27,000	$87,500
Prepaid Business Expenses	$3,000	$4,600
Additional Funds (first 3 months after opening)	$35,000	$60,000
ESTIMATED TOTAL FOR A START-UP OFFICE	$116,170	$466,300

Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross revenue, except that gross revenue for property management services is assessed separately with a property management fee equal to 1.5% of gross revenue.
Property Management Fees	1.5% of gross revenue from property management services.
Minimum Monthly Royalty Fee	$500 per month.
Minimum Annual Royalty Fee	Varies by location.
Holding Over – Royalty Fee	The royalty fee due during any holding over period will equal to twice the royalty fee otherwise due.
Brand Marketing Fund (BMF) Fees	.50% of all gross revenues.
Productivity Suite	Varies.
Leads Engine	See FDD.
Computer Hardware and Software Maintenance and Support	$1,000 to $3,000 or more per year.
International Leadership Academy (ILA) Fee	Not to exceed $399 per attendee – the fee includes tuition, materials, and function meals only.
Other Education Fees	Vary by course and duration.
Audit Fees	Franchisees must immediately pay the franchisor any fees that the audit reveals were due during the audit period but not paid, plus interest at Prime plus 2%.
Liquidated Damages	See FDD.
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.
Transfer/Assignment Fee	$5,000 per transfer.
Costs and Attorney Fees	Will vary.
Indemnification	Will vary.
Taxes	Will vary.
Relocation/Improvement Fees	Will vary.
Insurance	If franchisees fail to obtain and maintain the required insurance, the franchisor has the right to obtain insurance on their behalf, and they must promptly reimburse the franchisor for the cost of that insurance.
Product/Service Fees	Will vary.
Limited Purpose Office Initial Franchise Fee	$1,000
One21	$685 - $755 per registrant for One21, depending upon when the franchisee registers.

The above information has been compiled from the FDD of Century 21. Year of FDD: 2025.
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