Property Management Inc. Franchise Costs, Fees & FDD

Year Business Began: 2008

Franchising Since: 2008

Headquarters: Lehi, Utah

Estimated Number of Units: 400

Franchise Description: Property Management Incorporated Franchise, LLC is the franchisor. The PMI business model offers a broad spectrum of community association, commercial, residential, and vacation/short-term rental property management and real estate services. Franchisees will operate a PMI business, in a specific geographic area, using PMI’s name, logo and other trademarked and copyrighted materials, procedures, software solutions, property management software, processes and systems. Franchises operate in the following industry sectors (also referred to as pillars): residential, commercial, association, short-term rental, and brokerage.
Training Overview: The franchisor will provide franchisees with the training program for the franchisee’s primary and additional pillars. The training program will take place remotely, via telephone, webinars, web-based tools, and instructional videos and tutorials. Franchisees will participate from their office or other location of their choosing and the franchisor will participate from its corporate headquarters. The training program occurs over a 90 – 180 day period and is comprised of two components, being Training and Opener. The number of hours required for the training program may vary, depending on the franchisee’s business experience, real estate and property management experience, licenses held and existing business structure. Once franchisees have completed the training program, the franchisor requires franchisees or their operating principal and up to one other person of their choosing to participate in workshop, and PMiLAUNCH. Thereafter, the franchisor requires franchisees or their operating principal to participate from time to time in programs, seminars and continuing education. From time-to-time, the franchisor may provide what it calls “refresher courses.” Refresher courses may be held online, by webinar, conference call or in-person. The franchisor may hold an annual summit which, if held, will require franchisees to attend.

Territory Granted: The territory will usually be delineated by city, county, state and/or United States Post Office zip code boundaries, boundary streets, and/or highways. Once established, the boundaries of the territory will not be adjusted without the franchisor’s written consent, regardless of whether the population of the territory increases or decreases over time. Each territory is individually negotiated and determined. 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 controls. Franchisees may not advertise and solicit business outside of their territory.

Obligations and Restrictions: Franchisees do not have to participate personally in the direct operation of their business, though it is recommended that they do so. Franchisees are required to form a legal entity to operate the business, and they must designate a person to be responsible for the day-to-day operation of the business (principal operator). The principal operator is a person designated to act as the general manager of the business and who is authorized to oversee the management of the business and direct the delivery of property management services, leasing and brokerage services. The principal operator must be designated by the franchisee and approved by the franchisor. Franchisees must sell only those products and services approved by the franchisor and may not use the business, systems, or marks for any other purposes. Franchisees may offer other services and products not approved only after they have obtained the franchisor’s express written permission to do so.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years unless terminated sooner. Additional 10-year renewal franchise terms are available if all obligations for renewal are met.

Financial Assistance: Neither the franchisor nor any related company is obligated to provide franchisees 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, the franchisee’s business operations, including history of growing the business, and their stability as well as the franchisor’s need for the development of the franchisee’s market area.

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$64,900	$90,000
Rent	$0	$2,000
Rental Improvements	$0	$2,500
Deposits	$0	$2,500
Pillar Certification (Training Program, Workshop, PMiLAUNCH)	$0	$3,800
Equipment and Business Supplies	$500	$3,000
Computer Hardware and Software (as required)	$675	$2,975
Local Advertising Expenses (for period of 3 months)	$4,500	$13,500
Insurance	$2,000	$5,000
Professional Services	$0	$2,000
VOIP Telephone Equipment (3 months not including FCC fees and taxes)	$300	$500
Additional Funds (for period of 3 months)	$3,864	$25,000
Initial Trust Account Deposit (residential, commercial, and short-term rental pillars)	$500	$1,000
ESTIMATED TOTAL	$77,239	$153,775

 
Other Fees

Type of Fee	Amount
Royalty	Monthly: (i) 5.0% of brokerage plus (ii) a tiered percentage of gross revenue (the greater of 7% or $350, $700, $1,050 based on territory sales quota), on gross revenue up to $35,000; plus 6% of gross revenue from $35,001- $75,000; plus 5% on gross revenue above $75,001, plus (iii) 0.5% on self-owned doors, units, and suites and 1% on self-owned keys of rent and leasing fees collected on self-owned keys.
National Advertising Fee	2.0% of gross revenue.
Local Advertising	Minimum of $1,500 per month and $1,000 per month for each additional pillar.
PMiBOOKS Bookkeeping Program	No fee to be charged until the first door, unit, key, or square foot is in place; thereafter, the current minimum monthly fee is: (i) for doors and square feet, the greater of $15 per door/commercial unit managed or $100; (ii) for units, the greater of: (a) 20% of the management fee the franchisee is paid for managing units or (b) $75 per association plus an initial $3.00 per unit setup fee; and (iii) for keys, presently, the greater of (a) $65 per key managed or (b) $325, and a $250 onboarding fee.
PMiSOFT Software (for franchisees that manage residential and commercial properties)	Presently, no per door monthly fee.
PMiWARE Software (for franchisees that manage associations)	Presently, $35 per association and a one-time setup fee of $500.
PMiSTR Software (for franchisees that manage short-term rentals)	Monthly: A one-time $500 setup fee applies, with a per-key fee structured as follows: $40 per key for up to 5 keys, $35 per key for 6 to 15 keys, $30 per key for 16 to 50 keys, $27 per key for 51 to 100 keys, and $24 per key for more than 100 keys. Once the number of keys reaches a specified range, all keys are billed at that range’s rate. (For example, a franchise with 7 keys would be billed a one-time $500 setup fee plus $35 per key for all 7 keys, totaling $745.) Additionally, optional add-on bundles are available starting at $40.
Accounting Software	Presently, a monthly fee of $30 - $200 (based on subscription and other costs dictated by the provider).
PMiPrograms	Monthly fee applies at the greater of $89 or $1.20 per property unit, plus additional charges for extra services.
Audit Fee	If brokerage or gross revenue is understated by 5% or more, franchisees pay the costs of audit, a charge of 50% of the understated amount, and the royalties and fees (plus interest) that would have been owed on the understated amount.
Transfer Fee	Presently, $12,000
Franchise Renewal	Presently, $10,000.
Late Fees, Non-sufficient Funds fees, or Interest on Late Payments	Presently, $50 per day that payment is late, plus highest applicable legal rate for open account business credit, or if there is no maximum, not less than the rate of 5% per month. Franchisees shall be responsible for any insufficient funds fees assessed by payment processors in connection with payments due under this agreement.
Insurance	An annual premium of approximately $2,000 - $5,000.
Late Fee	If proof of insurance is not received by the franchisor prior to opening day or not maintained during term, franchisees will be assessed a late fee of $25 per day.
PMiWorkflow	Presently, an annual subscription of $22.50 per month per license.
Extraordinary Education Cost	The then current fee, which is presently a minimum of $600 to $800 per day, plus travel reimbursement.
Monthly Phone Service Fee	Presently, a one-time set up fee of $94.95 – $149.90 before FCC regulated fees and taxes, and $65.87 per month before FCC regulated fees and taxes.
Trust Account Reconciliation Fee	Presently, $5.00 per door.
Compliance Fee	Presently, $25.00 per day if franchisees are out of compliance with the franchisor’s quality measures in the Franchise Agreement.
Broker Fee (for residential and commercial pillars)	Presently can range from $0 to 30% of leasing fee.
Lead Origination Fee	For all PMI corporate sourced acquisition leads that result in a signed purchase agreement, the following fees will apply: Due at closing, the sourcing fee is equal to 3% of the total transaction value with a maximum cap at $30,000.

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