Q. How much is the franchise fee?

A. The franchise fee is only $19,900. Typically, a new office may cost from $25,000 to $50,000. The size of the brokerage office, build out, location, pre-opening expenses, inventory, office assets and signage will affect new brokerage costs. These other costs are paid to suppliers.

Q. When do we pay the franchise fee?

A. After we have approved your application and worked out your territory, we will prepare a completed franchise agreement. You pay the $19,900 when you sign and return the franchise agreement.

Q. How much is the on-going royalty?

A. A total of 5.25% of the gross income is paid as a Royalty. The breakdown, 5% is for Royalty, 0.25% is for National Advertising. Example: You sell a home and earn a $3000 commission. The royalty would be $150; the advertising fee would be $7.50 for a total of $157.50.

Q. How difficult is it to get approved to buy a franchise?

A. Not very difficult! You need to be financially stable and have access to funds necessary to buy the franchise. Once you are ready to begin operations, funding is also needed to equip an office, invest in start-up advertising, and cover operating costs for the first few months. The amount varies from market to market. As with any business, you need to have adequate funds to get the business started and give it time to grow.

Q. Do I need to be a licensed broker?

A. Most state real estate laws require that a real estate office have a broker. If you are not a broker, you need someone working with you who has or can obtain a broker’s license. Some of our Franchisee’s have hired a broker, others have partnered with one.

Q. Do I need an office?

A. Yes. We do require that you have a professional office location. The requirements are minimal. Some find an "executive suite" or a small location when just starting out. Again, we will help you determine the best plan based on your projected growth rate.

Q. What is the availability of opportunities in my area?

A. The availability of franchises in specific geographic areas must be discussed with Realty Direct’s franchising personnel.

Q. How much money will I make?

A. Profitability varies depending upon a number of factors, including sales, marketing budget, number of agents, and operating costs and the ability of the franchisee to manage and control the business. Questions related to profit and loss are discussed during a later stage of the selection process.

Q. How can you afford to charge less commission and still be successful and profitable?

A. Volume and efficiency. Sounds simple, and it is. While most real estate companies are looking for ways to charge more and to provide less to home sellers, we take the opposite viewpoint. We know that by charging less and by doing more, we can be more successful. Considering that we offer the same services as the Full Price, Full service real estate companies, our buyers and sellers often comment “how do other real estate companies justify such high commission?”.

Q. What about the other agents; will they show Realty Direct listings?

A. Yes. Keep in mind all of our listings are listed in the MLS. We don't ask cooperating agents to work for a discounted commission. We recommend offering the same cooperating commission that is common in your area. The discount is taken on the listing side.

Q. Do we buy signs and supplies from you?

A. No. We provide you with information on suppliers that we have negotiated with. You can choose to buy from them or use vendors of your choice. You will usually find our approved vendors offer very competitive pricing.

Q. What is the next step?

A. Call us with any questions you may have.