Keyrenter Property Management Franchise Costs, Fees & FDD

Year Business Began: 2007

Franchising Since: 2014

Headquarters: Midvale, Utah

Estimated Number of Units: 60

Franchise Description: Keyrenter Franchise, LLC is the franchisor. Keyrenter Property Management businesses offer a full range of real estate services, focusing primarily on real estate management and rental services to owners of single-family homes, condominiums, and multi-family properties. The franchisor offers two franchise programs:

• A Keyrenter Property Management franchise is a franchise purchased within a centralized metropolitan area that has a population that exceeds 100,000 people.
• A Brand Conversion Franchise is available to those individuals that already own a bona fide, existing residential property management company with at least 20 residential or commercial units under management.

Training Overview: Franchisees must satisfactorily complete real estate or property management training by a state-certified real estate course provider prior to opening their business. The franchisor provides franchisees an initial training program that covers material aspects of the operation of the franchised business. This training is offered at the franchisor’s headquarters in Midvale, Utah or another location it designates. Franchisees must designate a manager for the franchised business, and s/he must satisfactorily complete the initial training prior to opening the franchised business. One or more assistants of the franchisee’s choosing may also attend at the franchisee’s option. Periodically, franchisees or their managers will be required to participate in additional ongoing training, including the annual Keyrenter Summit Convention which will not exceed four days.

Territory Granted: Franchisees will be assigned a non-exclusive territory with a population of 100,000 or greater. To determine market size for the purpose of designating the territory, the franchisor uses population data from the U.S. Census Bureau or another source it deems reliable. It may not be redefined even if the population changes. The non-exclusive territory defines the area in which franchisees must operate their Keyrenter business. The address of the franchisee’s physical location must be within the boundaries of the territory. The territory will be identified by city, county, state, highway, or other geographic boundaries. Once established, the territory will typically not be changed. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor cannot control.

Obligations and Restrictions: The Keyrenter business shall be managed by franchisees, or if they are an entity, one owner who is a natural person designated in writing to us as the person to make all decisions for the franchisee entity (designated owner). The franchisor may in limited circumstances allow franchisees to appoint a manager (designated manager) to run the day-to-day operations of the Keyrenter franchise. The designated manager of the franchised business must be properly licensed to perform real estate activities by any applicable governing body, if the state requires licensure to perform property management functions. Franchisees must offer only the services, systems, and products the franchisor specifies. Franchisees may not sell any products, systems, or services that the franchisor has not authorized, and they must discontinue offering any products or services that the franchisor may disapprove. The continuation of franchise rights depends on the franchisee meeting a performance requirement.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If qualified, franchisees may renew for up to two additional terms of 10 years each.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation. If franchisees are currently in or have been honorably discharged from any branch of the U.S. Armed Forces, the initial franchise fee of their first KPM franchise will be discounted by 20%. If franchisees can show that they have obtained the appropriate real estate license before they contacted the franchisor for the first time, and they have paid all fees as of the opening date, the franchisor will issue a $5,000 credit.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$50,000	$50,000
E-2 Visa Fee	$0	$15,000
E-2 Visa Deposit	$0	$35,000
Training Fee	$5,000	$5,000
Start-Up Marketing Package Fee	$10,000	$10,000
Travel and Living Expenses to Attend Initial Training	$3,000	$5,000
Real Estate/Rent	$1,500	$5,000
Real Estate Broker Fees	$5,000	$10,000
Real Estate Licensure or Property Management Training	$800	$2,000
Utility Deposits	$0	$1,500
Leasehold Improvements	$0	$4,000
Insurance	$1,500	$4,000
Office Equipment and Supplies	$1,000	$4,000
Signage	$500	$5,000
Furniture, Fixtures and Equipment	$1,500	$2,000
AppFolio Software Implementation Fee	$600	$600
Licenses and Permits	$1,650	$3,000
Legal & Accounting	$2,000	$6,000
Dues and Subscriptions	$1,500	$3,000
Keyrenter Marketing	$0	$3,554
Local Marketing and Lead Generation	$0	$8,550
Additional Funds—3 months	$30,275	$57,275
ESTIMATED TOTAL (for new franchise)	$116,425	$240,979

 
Other Fees

Type of Fee	Amount
Royalty Fee on Gross Revenue (excluding Real Estate Sales Commissions and Referral Fees)	Up to 7% of gross revenue (dependent on monthly revenue) or the minimum royalty fee (as defined), whichever is greater.
Royalty on Authorized Non-System Real Estate Sales Commissions and Referral Fees	Same percentage rate as the royalty on sales commissions; 20% of referral fee revenue.
Taxes	As required by governmental authorities.
Late Fees	1.5% per month or the highest rate allowed by the state where the franchisee located, whichever is less, plus collections costs.
Insufficient Funds Fee	$100 per occurrence, plus late fees.
Payment Service Fee	Up to 4% of total charge.
Failure to Submit Required Report Fee	$100 per occurrence and $100 per week.
Technology Fee	The then-current fee (currently, $150 per month).
Additional Email Fee	$12 per month for each additional email address.
Office Relocation Fee	$350 plus the franchisor’s expenses.
Non-Compliance Fee	$25 per day.
Renewal Fee	$2,500
Relocation Assistance	Approximately $750 to $1,500.
Substitute or New Manager Training/ Additional Training	The then-current fee (currently, $495 per day, plus the franchisee’s expenses in attending).
Additional Operations Assistance	The then-current fee (currently, $250 per day plus the franchisor’s expenses).
Conference Fee	The then-current fee (currently, $500 - $1,000 per person, depending on the location of the Keyrenter Summit; it may vary in the future).
System Modifications	Not more than $5,000 in the first year of the franchise agreement, and not more than $50,000 during the initial term of the franchise.
Brand Development Fund Contribution	1% of gross revenues or $2 per month per unit managed, whichever is greater.
Keyrenter Marketing Fee	$575 per month plus 3% credit card fee.
Local Advertising Fee	The difference between the amount franchisees spent on local advertising each month and their local advertising spend requirement ($1,425 or 3% of the past month’s gross revenue, whichever is greater).
Local and Regional Advertising Cooperatives	The greater of i) the local advertising spend; or ii) another amount established by cooperative members.
Unauthorized Advertising Fee	$500 per occurrence.
Additional Marketing and Advertising Services	Varies based upon service requested.
Telephone Number Charges	Actual amount incurred.
Audit Expenses	All costs and expenses associated with audit, approximately $1,500 to $5,000.
Approval of Products or Suppliers	$100 to $1,000
Customer Issues	All costs incurred by the franchisor in assisting the franchisee’s customers.
Bookkeeping Services Fees	Varies depending on service.
Insurance	Amount of unpaid premiums plus the franchisor’s reasonable expenses in obtaining the policies, plus a 20% administrative surcharge.
Management Fee	The then-current fee (currently, $500 per day, plus the franchisor’s expenses).
Transfer Fee	$12,500 plus any actual cost of a broker fee, commission, or finder’s fee that the franchisor incurred.
Transfer Fee to Controlled Entity	$250
Liquidated Damages	Will vary under the circumstances.
Indemnification	All costs including reasonable attorneys’ fees.
Costs and Attorney Fees	Amount incurred.

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