Do you want to open a real estate business by buying Century 21 franchise? If YES, here is how much it cost to open a Century 21 franchise successfully. Century 21 Real Estate (Century 21) was established in 1971 by two real estate agents, Art Bartlett and Marsh Fisher, in Orange County, California. It was later acquired by Trans World Corporation in 1979 when Trans World Corporation decided to focus on hospitality.
However, in 1985, MetLife acquired Century 21, but later sold Century21 to Hospitality Franchise Systems (later Cendant) in 1995. After Cendant split, Century 21 became part of Realogy. Since 1972, the Century21 brand has been changing the real estate game by offering independent brokers and entrepreneurs the ability to achieve extraordinary results in an increasingly competitive market.
With more brand awareness than any real estate brand, Century 21 Real Estate is well positioned in the global Real Estate market and will continue to change the game. To steadily stay on top, the company keeps reinventing what the CENTURY 21 brand means in the hearts and minds of those who are buying, selling and working in real estate today.
Century 21 Real Estate franchise is a business dedicated to providing buyers and sellers of real estate the highest quality services possible in the most efficient and suitable manner. Century 21 Real Estate LLC is the franchisor of the world’s largest residential real estate sales organization, with more than 6,600 independently owned and operated franchised broker offices in over 30 countries and territories worldwide.
Note that this wide network over the years has helped Century 21 agents to understand communities better and offer better options to buyers of real estate while also letting them provide competitive pricing for sellers.
Century 21 real estate franchise offers unique and favourable opportunities for its franchisees due to a proven franchise concept and a global recognition of the brand. Note that owning a Century 21 franchise means running your business smoothly with consistent assistance of the franchisor.
Financial Requirements of Opening a Century 21 Franchise
According to Century 21 FDD, here are fees you are expected to pay when acquiring this franchise.
- Initial Franchise Fee: $0 – $25,000
- Real Estate and Improvements: Not included in total
- Leasehold Improvements: $0 – $105,000
- Computer Equipment and Electronic Data System: $5,000 – $10,000
- Signs – Exterior: $800 – $20,000
- Signs – Yard, Open House and Rides: $2,000 – $5,000
- Name Badges (approx. 7 to 70): $150 – $750
- Miscellaneous: $250 – $500
- Other Advertising – 3 Months (Not required): $0 – $10,000
- Legal Expenses: $0 – $4,000
- Office Supplies: $1,000 – $7,500
- Website: $0 – $30,000
- Multiple Listing Services: $0 – $2,000
- Data Fees Transmission: $0 – $5,000
- International Management Academy (IMA): $0 – $1,800
- Insurance Deposits and Premiums: $500 – $2,500
- Additional Funds (3 Months): $15,000 – $40,000
- Facility and Space Planning: $9,000 – $17,500
- Security and Other Deposits: $7,500 – $17,700
- Furnishings and Communications Equipment: $27,000 – $87,500
- Prepaid Business Expenses: $3,000 – $4,600
- Additional Funds – First 3 months after opening: $35,000 – $60,000
ESTIMATED TOTAL: $106,200 – $456,350
Other Fees May Include
1. Royalty Fee
- 6% of gross revenue, except that gross revenue for Property Management Services is assessed separately with a Property Management Fee equal to 1.5% of gross revenue.
2. Property Management Fees
- 5% of gross revenue from Property Management Services.
3. Minimum Monthly Royalty Fee
- $500 per month.
4. Minimum Annual Royalty Fee
- Tend to vary by location
5. Brand Marketing Fund Fee (BMF)
- PROGRAM A: 2% of monthly Gross Revenue up to $3,000,000; 0.5% of Gross Revenues over $3,000,000.
- PROGRAM B: 2% of monthly gross revenue, subject to a monthly minimum of $708 and maximum of $1,925.
6. CRM and Consumer Platform
- As of the issuance date of this disclosure document, franchisees will not be required to pay a separate fee to use the CRM and Consumer Platform, although they reserve the right to require payment of reasonable fees to the franchisor, or an affiliate, for the use of the CRM and Consumer Platform (or enhancements thereto).
7. Lead Management System
- $0 to $5,000 per year.
8. Computer Hardware and Software Maintenance and Support
- $1,000 to $2,000 or more per yea
9. International Management Academy Fee (IMA)
- $399 per attendee – the fee includes tuition, lodging and function meals only.
10. Other Education Fees
- Tend to vary by course and duration
11. Audit Fees
- Cost of audit plus fees past due, interest, late charges and costs.
12. Special Assistance
- As negotiated
13. 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.
14. Transfer/Assignment Fee
- $5,000
15. Costs and Attorney’s Fees
- Tend to vary
- Taxes
- Tend to vary
- Indemnification
- Tend to vary
- Relocation/Improvement Fees
- Tend to vary
- Insurance
- Cost of Insurance
- Product/Service Fee
- Tend to 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.
- Limited Purpose Office Initial Franchise Fee
- $1,000
- One21
- $469 – $669 per registrant for One21, depending upon when franchisees register.
6 Steps on How to Open a Century 21 Franchise
The Century 21 System currently has over 8,000 independently owned and operated franchise brokers across 80 countries and territories that have started this movement. If you are interested to join this movement, here are key steps to follow:
1. Make sure you have adequate capitalization
To successfully open a Century 21 real estate franchise, you must have a net worth of more than $100,000. Include your personal wealth, funds from partners and private investors and potential business loans from banks or other lenders.
2. Appreciate the investment required for a real estate franchise
You will need to consider the costs of licenses and permits, the cost of insurance, etc. Corporate offices offer a range of services, including training, equipment, and marketing services. Determine what you need based on your own experience as an entrepreneur and real estate professional.
3. Evaluate your prior experience and strengths
You are advised to thoroughly evaluate your prior business experience before applying to become a Century 21 franchise owner.
4. Assess market availability
You will want to look at the market availability for Century 21 franchises and see if there are available markets in your location of interest before proceeding with the franchising application. Request a list of the company franchises currently in operation in your desired region.
5. Submit your application
Review the franchise agreement with an attorney who has experience in franchising and real estate business operations before you sign the paperwork committing to purchase the franchise. Your application will be reviewed by the Century 21 franchise team. You will be emailed a confirmation receipt upon reception of your online application. Corporate offices typically want to see if you have the finances to start the company and continue operations.
6. Receive approval & opening your Century 21 franchise.
Note that you will receive franchise approval once the financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.
Conclusion
Century 21 Real Estate LLC is the franchisor of the world’s largest residential real estate sales Organization. The system consists of approximately 9,400 independently owned and operated franchised broker offices in 80 countries and territories worldwide with over 127,000 sales professionals. Nothing can be better, especially if you are looking to join the real estate train.