Coldwell Banker Residential Franchise Cost & Fees

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Description

Year Business Began: 1906Franchising Since: 1982Headquarters: Madison, New JerseyEstimated Number of Units: 3,220 (combined commercial and residential)Franchise Description: The franchisor is Coldwell Banker Real Estate LLC. The franchisor operates as a subsidiary of Realogy Group and Realogy Holdings. The franchisor offers franchises for real estate sales offices in the United States to owners of existing real estate brokerage businesses and when business circumstances warrant, to an experienced real estate broker who is starting a new residential real estate business. 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.Training Overview: After franchisees sign their Franchise Agreement, their will provide their Responsible Broker or Designee with Orientation, known as Coldwell Banker Connect. The program is mandatory and must be completed to the franchisor’s satisfaction by one of these persons within a year of the OpeningDate (as defined in the Franchise Agreement). Coldwell Banker Connect is currently a two and one half day program and held at or near the franchisor’s headquarters in New Jersey. The franchisor does not provide on-the-job training. The franchisor has the right to change, discontinue or add any learning program for the Coldwell Banker system at any time. During the operation of the franchised Coldwell Banker office, the franchisor will provide continuing assistance to franchisees with respect to improvements and changes to the Coldwell Banker system. The franchisor will also conduct ongoing education courses, seminars or conferences either at our corporate office, online, 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.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 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 name. These defined services are more limited than the scope of activities permitted under most state real estate licensing laws. Franchisees may be permitted to engage in other business activities with the franchisor’s prior written consent.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. The Franchise Agreement will be extended if franchisees sign a new Franchise Agreement or a Term Extension Addendum.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 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 financing up to 100% of the initial franchise fee using an Initial Franchise Fee Promissory Note. The franchisor also 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 may offer financing opportunities to existing franchisees for acquisition opportunities or other business-related expenses under either an interest-bearing or a non-interest-bearing Expansion Promissory Note. Investment Tables: Estimated Initial Investment for a Conversion Office Name of Fee Low High Initial Franchise Fee $0 $25,000 Building Signs $700 $20,000 Yard Signs $1,900 $5,000 Open House Signs $800 $1,250 Miscellaneous Rider Signs $100 $300 Name Badges $150 $750 Miscellaneous $250 $500 Printed Materials $5,100 $7,500 Insurance $500 $1,500 Legal Expenses $0 $4,000 Coldwell Banker Connect – Travel Expenses and Costs $800 $2,700 Travel$0$10,000 Multiple Listing Services $0 $2,000 Computer Equipment for Electronic Data Transfer System $5,000 $10,000 Additional Funds (first 3 months after opening) $13,000 $43,000 Estimated Total Investment for Conversion Office $28,300 $139,500 Estimated Initial Investment for a Start-up Office Name of Fee Low High Initial Franchise Fee $0 $25,000 Building Signs $700 $20,000 Yard Signs $1,900 $5,000 Open House Signs $800 $1,250 Miscellaneous Rider Signs $100 $300 Name Badges $150 $750 Miscellaneous $250 $500 Printed Materials $5,100 $7,500 Insurance $500 $2,500 Legal Expenses $0 $4,000 Coldwell Banker Connect – Travel Expenses and Costs $800 $2,700 Website$0$10,000Multiple Listing Services$0$2,800 Computer Equipment for Electronic Data Transfer System $5,000 $10,000 Facility and Space Planning $1,800 $2,800 Leasehold Improvements $20,000 $125,000 Furnishings, Computers and Communications Equipment $40,200 $80,200 Security and Other Deposits $7,500 $17,700 Prepaid Business Expenses $3,000 $4,600 Grand Opening Promotion $0 $5,000 Additional Funds (first 3 months after opening) $50,000 $100,000 Estimated Total Investment for New Start-Up Office $137,800 $426,800 Other Fees Type of Fee Amount Royalty Fees 6% of Gross Revenue. Minimum Annual Royalty Fee Will vary. Property Management Fees 1.5% of Gross Revenue from Property Management Services. Brand Marketing Fund (“BMF”) Contribution PROGRAM A:2.5% of Gross Revenue up to $2,100,000 (measured on an annual basis); 0.5% of Gross Revenue over $2,100,000.PROGRAM B:2.5% of Gross Revenue monthly with a maximum $1,828 per office per monthPROGRAM C:Monthly contributions are calculated as a percentage of monthly Gross Revenue (BMF Flat Rate) Zap Platform As of the issuance date of the 2018 disclosure document, franchisees will not be required to pay a separate fee to use the Zap platform, although the franchisor reserves the right to require payment of reasonable fees to it, ZapLabs, or an affiliate, for the use of the Zap platform (or enhancements thereto). Further, although currently there are no plans to do so, the franchisor reserves the right to require franchisees to use the Zap platform. LeadRouter Fees $375 -$5,000 per year. Computer Hardware and Software Maintenance and Support$1,000 – $2,000 or more per year Transfer Fees $5,000 Audit Fees If the franchisee understates Gross Revenue by more than 5% in amounts due for any three month period or fails to keep readily auditable records, the franchisee is liable for the cost of the franchisor’s audit, plus any fees past due, interest, late charges and costs. A standard audit is estimated to cost between $2,000 and $5,000 depending on the size of the company and the number of offices the franchisee operates. The franchisor may charge an administrative fee, currently $500, if the franchisee cancels or reschedules an audit. 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 Fees and Expenses The franchisor currently does not charge tuition for the initial orientation, Coldwell Banker Connect. However, franchisees must have to pay the travel and incidental expenses of their additional attendee(s). Additional training may be available on an optional basis. If franchisees elect to attend any optional training courses, franchisees will be responsible for course fees, if any, and all travel, hotel, meal and other expenses. Special Assistance As negotiated. International Business Conference (Gen Blue Experience) $569 – $799 per registrant for Conference depending upon when the franchisee registers. Liquidated Damages Upon “early termination” of the Agreement (that is, any termination before the Expiration Date, other than a mutual termination or termination by the franchisees), the franchisee must immediately pay the franchisor liquidated damages. Liquidated damages will be equal to the combined monthly average of Royalty Fees, advertising contributions, and any other fees under the Agreement (without regard to any fee waivers, rebate or other reductions) payable from the Opening Date through the date of early termination, multiplied by the lesser of (i) 36 or (ii) the number of full months remaining in the Term. 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. Testing/Inspection Fees to Approve Supplier The franchisor does not currently charge fees for approval of a supplier, but it has the right to charge reasonable testing and inspection fees. Expanded Location Fee $1,000 The above information has been taken from the FDD of Coldwell Banker Residential. Year of FDD: 2018Franchise Direct’s Disclaimer

Estimated Initial Investment for a Start-up Office
Name of Fee Low High
Initial Franchise Fee $0 $25,000
Building Signs $700 $20,000
Yard Signs $1,900 $5,000
Open House Signs $800 $1,250
Miscellaneous Rider Signs $100 $300
Name Badges $150 $750
Miscellaneous $250 $500
Printed Materials $5,100 $7,500
Insurance $500 $2,500
Legal Expenses $0 $4,000
Coldwell Banker Connect – Travel Expenses and Costs $800 $2,700
Website $0 $10,000
Multiple Listing Services $0 $2,800
Computer Equipment for Electronic Data Transfer System $5,000 $10,000
Facility and Space Planning $1,800 $2,800
Leasehold Improvements $20,000 $125,000
Furnishings, Computers and Communications Equipment $40,200 $80,200
Security and Other Deposits $7,500 $17,700
Prepaid Business Expenses $3,000 $4,600
Grand Opening Promotion $0 $5,000
Additional Funds (first 3 months after opening) $50,000 $100,000
Estimated Total Investment for New Start-Up Office $137,800 $426,800