Coldwell Banker Residential Franchise Costs, Fees & FDD

Year Business Began: 1906

Franchising Since: 1982

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 residential real estate brokerage offering with defined real estate brokerage services from a specified location under the name “Coldwell Banker.” 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 it may offer a franchise to newly formed real estate brokerages. There is separate FDD for Coldwell Banker Commercial.
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 will be enrolled into Coldwell Banker Connect, the orientation program. The franchisor’s pre-launch transitions support begins when the Franchise Agreement is signed and lasts approximately 6-8 weeks through the opening date. The franchisor will provide franchisees with learning materials during Orientation which may include material posted to its intranet site, handouts, and other related materials. The franchisor does not provide on-the-job training. During the operation of the franchised Coldwell Banker office, the franchisor will provide continuing assistance with respect to improvements and changes to the Coldwell Banker 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 owned by the franchisor, or from other channels of distribution or competitive brands controlled by the franchisor. Franchisees must operate their franchise only from the office(s) identified in the Franchise Agreement. Franchisees must promote their services within the market served by the office(s). The franchisor does, however, work with its franchisees to collaboratively resolve conflicts between the franchisor and them regarding territory, customers and franchisor support. The franchisor does have 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 an 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 office 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 Coldwell Banker marks. These defined services are more limited than the scope of activities permitted under most state real estate licensing laws. You are not permitted to conduct transactions for commercial real estate under the residential marks. Franchisees may be permitted to engage in Real Estate Related Excluded Businesses, including businesses offering commercial real estate, with the franchisor’s prior written consent and such business activities must be conducted under another trade name and in a manner (including, but not limited to segregated workspaces as the franchisor may require and using a separate telephone number) that eliminates the prospect that the public might believe the business is related to the Coldwell Banker system in any way.

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. The franchisor has the right, however, to negotiate with the franchisee a greater or lesser term under the Franchise Agreement. There are no renewal rights. If the franchisor grants an additional term, the franchisor may require the franchisee 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. 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 its franchise sales incentive program.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$0	$25,000
Real Estate	Not included in total
Leasehold Improvements	$0	$105,000
Building Signs	$700	$20,000
Yard Signs	$2,000	$5,500
Open House Signs	$800	$2,000
Miscellaneous Rider Signs	$200	$400
Name Badges	$120	$400
Miscellaneous	$250	$500
Printed Materials	$5,100	$7,500
Other Advertising (local) / Grand Opening Promotion	$0	$10,000
Coldwell Banker Global Luxury Office Design Elements	$0	$70,000
Coldwell Banker Global Luxury Certification Course (per person)	$0	$575
Insurance	$500	$4,000
Legal Expenses	$0	$4,000
Website	$0	$10,000
Multiple Listing Services	$0	$3,000
Data Feed Transmission	$0	$5,000
Computer Equipment for Electronic Data System	$5,000	$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 (first 3 months after opening)	$15,000	$100,000
ESTIMATED TOTAL*	$32,870	$514,675

*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	Percentage of gross revenue set annually at 5.5% on January 1st of each year. As gross revenue increases during the year, franchisees will pay a declining percentage on incremental gross revenue.
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.
Property Management Fees	1.5% of gross revenue from property management services.
Brand Marketing Fund (BMF) Fees	0.50% of gross revenue.
Productivity Suite	Varies.
Leads Engine (optional)	Not charged currently.
Computer Hardware and Software Maintenance and Support	$1,000 - $3,000 or more per year.
Transfer Fees	$5,000
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.
Coldwell Banker Connect	Not charged currently.
Other Education Fees	Vary by course and duration.
Special Assistance	As negotiated.
Gen Blue Experience	$775 - $875 per registrant for in-person event.
Leadership Summit (optional)	$649 - $699 per registrant for in-person event.
Liquidated Damages	See FDD.
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.
Limited Purpose Office Initial Franchise Fee	$1,000

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