How much does it cost to open a franchise?

by Rincey Abraham

Becoming a franchise owner comes with a lot of benefits that can help a smaller, independent brokerage, such as marketing and operational support and brand recognition. However, there are also a number of fees and costs that go along with joining a franchise. If you’re interested in opening a franchise, see what some of the major brokerages can offer you.

Company Name Buy In Cost Fees Benefits # of Franchises Nationally # of Franchises in Chicago
Better Homes and Gardens Real Estate $35,000 6% royalty Business consulting, marketing, tools and training 91 1
Century 21 $25,000 (first office) $10,000 (branch office) 6% royalty Operational Support, international branding, recruiting, business resources, technology, ongoing support 2,300 68
Coldwell Banker Real Estate LLC $25,000 6% royalty Operational support, international branding, recruiting, business resources, technology, ongoing support 2,200 155
Crye-Leike $13,500 to $25,000 6% royalty, 20% renewal Sales training, relocation services, marketing, sales leads, recruiting systems 115 (28 franchise offices, 87 corporate offices) 0
Engel & Volkers $35,000 6% royalty, $17,000 renewal Global sales opportunities, virtual reality support across all of our licensees, EDGE – a new domestic and international syndication platform 115 0
Equity USA $1,600 $499 per transaction Payroll services, broker training, transaction tools, websites, E&O insurance, profit sharing, operational reimbursement 60 1
ERA Franchise LLC $25,000 6% royalty Operational support, international branding, recruiting, business resources, technology, ongoing support 520 2
Exit Realty $7,500 (rural) to $32,000 (urban) 10% of the current franchise fee upon renewal Technology, tools and training and a unique formula that provides the opportunity for all EXIT associates to earn residual income. 510 7
John L Scott Realty $15,000 5% royalty, $2,500 renewal Technology, presentations, coaching, luxury market clients, marketing 76 0
Keller Williams $35,000 6% royalty Coaching, profit-sharing, international brand recognition 743 2
List4Less / Sell4Free $29,000 5% royalty, $1,000 renewal 95% commission retention 9 0
NextHome Inc $2,750 to $6,750 $185/month per agent or 6% A fully automated and integrated system, state of the art proprietary technology platform with single sign on access, branding, marketing, advertising, recruiting, support, training and more 200+ 1
RE/MAX $12,500 to $35,000 $5,000 to $17,500 renewal Worldwide recognition, extensive training 3679 105 in northern Illinois
Sotheby’s International Realty $25,000 6% royalty Operational support, international branding, recruiting, business resources, technology, ongoing support 615 6
United Country $15,000 $1,500 renewal Differentiation for lifestyle properties in small cities, towns and country markets 450 3
Weichert $25,000 6% royalty One on one support, tech, business plans, workshops 388 15

*Data included in this chart was verified by each individual company and is accurate as of June 21, 2017.