Coldwell Banker Commercial Franchise Costs, Fees & FDD

Year Business Began: 1981

Franchising Since: 1998

Headquarters: Madison, New Jersey

Estimated Number of Units: 2,900 (combined commercial and residential)

Franchise Description: The franchisor is Coldwell Banker Real Estate LLC. The franchisor operates as a subsidiary of Anywhere Real Estate Services Group LLC. The franchise is for a commercial real estate brokerage offering with defined real estate brokerage services from a specified location under the name “Coldwell Banker Commercial.” The franchisor offers franchises for commercial real estate sales offices in the United States to owners of existing commercial real estate brokerage businesses and in certain situations it may offer a franchise to a newly formed commercial real estate brokerage. There is separate FDD for Coldwell Banker Residential.
Training Overview: The responsible broker (defined in the Franchise Agreement as the licensed real estate broker as required under the laws of the state in which the office is located), or the designee must attend the mandatory orientation program. Currently, travel is not required to attend orientation; however, if orientation is offered in-person it will be held at the franchisee’s location, or a location near the franchisor’s headquarters in New Jersey. Following orientation, the franchisor will provide ongoing support during which a transition team will partner with franchisees for additional training on an as needed basis. The franchisor does not provide on-the-job training. During the operation of the franchised Coldwell Banker Commercial office, the franchisor will provide continuing assistance with respect to improvements and changes to the Coldwell Banker Commercial system. The franchisor will also conduct ongoing training courses, seminars or conferences either at the corporate office, on-line, or in the franchisee’s area or elsewhere, although the franchisor has the right to determine if and when these courses may be offered, as well as their duration and content.

Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. Franchisees must operate their franchise only from office(s) identified in the Franchise Agreement. Franchisees must promote their services within the market served by the office(s). However, the franchisor has the right to grant to franchisees limited protected areas in which no new franchises will be granted for a period of time determined by the franchisor if it thinks that local market conditions or other economic factors merit such a decision.

Obligations and Restrictions: Franchisees, if they are an individual and obtaining the franchise as a sole proprietor, or their owners, if franchisees are an entity, must participate in the management of the franchise. Franchisees, their owners, and their office manager (if the office(s) will be operated by a commercial office manager) will exercise their continuous best efforts to maintain, develop and promote the franchise to its greatest potential and to enhance the goodwill associated with the marks and the system. Franchisees must retain a responsible broker (as defined in the Franchise Agreement) and franchisees, their owners, their commercial manager(s) and their responsible broker must comply with all applicable laws, rules and regulations. The Franchise Agreement strictly defines the real estate brokerage services the franchisee may provide under the marks. These defined services are more limited than the scope of activities permitted under most state real estate licensing laws. Franchisees are not permitted to conduct transactions for residential real estate under the commercial marks. Franchisees may be permitted to engage in real estate related excluded businesses, including residential real estate, with the franchisor’s prior written consent. The franchisor requires minimum operating standards in order for franchisees to continue to operate their Coldwell Banker Commercial office(s).

Term of Agreement and Renewal: The initial franchise term commences upon the opening date and expires on the date 10 years from the opening date. There are no renewal rights. If the franchisor grants franchisees an additional term, the franchisor may require them to sign the franchisor’s 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 franchisees 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 is based on several factors including without limitation financial need, credit history, ability to repay, net worth, the franchisee’s business operations, including history of growing a business, as well as the franchisor’s need for the development of the franchisee’s market area. The franchisor may offer a conversion promissory note to assist franchisees in paying certain conversion or opening costs associated with the franchisee’s affiliation with the system. In addition, the franchisor has the right to offer various financing programs to help franchisees with agent recruiting or other business related expenses. The franchisor may also offer various financing programs as part of our franchise sales incentive program.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$0	$20,000
Real Estate	Not included in total
Leasehold Improvements	$0	$400,000
Office Identity Signs	$700	$20,000
Property Signs	$8,000	$20,000
Printed Materials	$1,500	$3,000
Orientation	$800	$2,700
Legal Expenses	$0	$4,000
Insurance	$1,500	$11,500
Other Advertising (local) / Grand Opening Promotion	$3,000	$10,000
Computer Equipment and Electronic Data System	$5,000	$10,000
Website	$0	$10,000
Facility and Space Planning	$0	$17,500
Furnishings and Communications Equipment	$0	$87,500
Security and Other Deposits	$0	$17,700
Prepaid Business Expenses	$0	$4,600
Additional Funds (3 months)	$15,000	$100,000
ESTIMATED TOTAL*	$35,500	$733,500

*The estimated initial investment range covers from a conversion office up to a start-up office. The estimated range does not include real estate costs. For more details, see FDD.

Other Fees

Type of Fee	Amount
Royalty Fees	6% of the aggregate “gross revenue” for all offices up to $1,000,000 per calendar year for which payments were timely made and 3% of the aggregate gross revenue in excess of $1,000,000 per calendar year.
Minimum Standard Fees	If royalty fees paid each quarter are less than $7,500, difference between royalty fees paid and $7,500.
Minimum Annual Royalty Fee	Will vary.
Holding Over – Royalty Fee	The royalty fee due during any holdover period will be equal to twice the royalty fee otherwise due.
Commercial Property Management Fees	1.5% of gross revenue from commercial property management services.
Commercial Marketing Fund (CMF) Fees	2% of gross revenue monthly with a minimum of $592 and a maximum of $1,646 per office.
Transfer Fees	$5,000
Liquidated Damages	See FDD.
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%.
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.
Other Educational Fees and Expenses	If franchisees elect to attend any optional learning courses, they will be responsible for course fees, if any, and all travel, lodging, meals and other expenses.
Special Assistance	Charges will be based upon the assistance needed.
Global Conference Fee	$699 - $749 per registrant for Global Conference. A discount may be available depending upon registration date.
Gen Blue Experience	$775 - $875 per registrant for in-person event.
Costs and Attorney Fees	Will vary.
Indemnification	Will vary.
Taxes	Will vary.
Relocation/Improvement Fees	Will vary.
Insurance	Cost of insurance.
Product/Service Fees	Will vary.
Computer Hardware and Software Maintenance and Support	$1,000 to $3,000 or more per year.

The above information has been compiled from the FDD of Coldwell Banker Commercial. Year of FDD: 2025.
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