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How To Start Century 21 Franchise in USA : Fees, Application Process & Opportunities 2022

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Century21 Franchise In USA: Fees, Application Process & Opportunities 2022




 

Thinking of Investing in a Century21 Franchise in USA? We think it’s the best time and an appreciable opportunity for anyone looking to start their successful journey with an experienced franchisor behind them.

 

Having been in the real estate industry for over five decades, Century21 LLC has expanded to its full potential and has been operating over 11,500 units worldwide, with approximately 6,900 independently operated franchised broker offices. Additionally, the company has been franchising since 1972 and focuses on increasing its international presence.

 

Owning a real estate franchise such as Century 21 Real Estate LLC can kickstart your franchise portfolio. However, stepping into the real estate brokerage industry can be daunting, considering its substantial initial investment.

 

With this in mind, we decided to make it easier for you to understand the process. Therefore, in this article, we will break down the Financial Disclosure Document (FDD) for the Century 21 franchise in USA. Moreover, it will provide all the necessary information that prospective franchisees should know before making an investment decision.

 

About Century 21 Real Estate LLC

 

Century 21 Real Estate LLC is a US-based real estate brokerage corporation founded in 1971 by two real estate agents, Art Bartlett and Marsh Fisher.

It is a limited liability corporation with headquarters in Madison, New Jersey. The corporation is a subsidiary of Realogy Group and Realogy Holdings, the US’s largest operator of residential real estate brokerages.

 

Currently, Michael Miedler is the President and CEO of Century 21, who took over the charge in March 2019. Prior to this role, he served as the Chief Growth Officer and Senior Vice-President of Franchise Sales. Currently, Susan Yannaccone is serving as the President and CEO of Realogy Franchise Group.

 

According to the company, its ultimate aim is to provide buyers and sellers of real estate with the highest quality services possible most efficiently and suitably.

 

Century 21 Real Estate LLC has control over 6,600 independently owned and operated franchised broker offices in over 30 countries and territories worldwide.

 

Henceforth, this vast network helps franchisees to understand communities better and provides better options to buyers while also letting them offer competitive pricing for sellers.

 

Century 21 Franchise In USA: Breakdown Of Start-up Costs & Fees

 

There are several fees & costs associated with opening a Century 21 franchise in USA. The franchisor typically sets a franchise fee, which covers the cost of opening a franchise location. Other fixed expenses include equipment, marketing, licensing, insurance, taxes, etc.

 

The full breakdown of these expenses is available in the franchisor’s Financial Disclosure Document (FDD). In addition, the FDD report provides additional information such as whether the franchise is renewable and does the franchise offer financing support.

 

Financial Requirements:

 

  • Initial Investment: $24,700 – $451,350
  • Net-worth Requirement: $100,000

 

Ongoing Fees:

 

  • Initial Franchise Fee: $25,000
  • Ongoing Royalty Fee: 6%
  • Ad Royalty Fee:5%

 

Initial Investment And Startup Costs



 

Estimated Initial Investments/Costs
CostMinimumMaximum
Initial Franchise Fee$0$25,000
Leasehold Improvements$0$105,000
Real Estate and ImprovementsVaries (Not Included In Total)Varies (Not Included In Total)
Computer Equipment and Electronic Data System$5,000$10,000
Signs – Yard, Open House and Rides$2,000$5,000
Signs – Exterior$800$20,000
Name Badges (approx. 7 to 70)$150$750
Other Advertising – 3 Months (Not required)$0$10,000
Miscellaneous$250$500
Legal Expenses$0$4,000
Website$0$30,000
Office Supplies$1,000$7,500
Multiple Listing Services$0$2,000
Insurance Deposits and Premiums$500$2,500
Additional Funds (3 Months)$15,000$40,000
International Management Academy (IMA)$0$1,800
Estimated Total For Conversion Office       $24,700          

$264,050

 

 

Additional Fees for Start-Up Office

Security and Other Deposits$7,500$17,700
Facility and Space Planning$9,000$17,500
Furnishings and Communications Equipment$27,000$87,500
Additional Funds – First 3 months after opening$35,000$60,000
Prepaid Business Expenses$3,000$4,600
Estimated Total For A Start-Up Office         $106,200        

$451,350

 

 

Fixed Cost/Fees:

 

Fees/CostAmount
Royalty Fee6% of gross revenue.
Minimum Monthly Royalty Fee$500 per month.
Property Management Fees1.5% of gross revenue from property management services.
Holding Over – Royalty FeeThe royalty fee due during any holding over the period will equal to twice the royalty fee.
Minimum Annual Royalty FeeVaries
CRM and Consumer PlatformVaries
Brand Marketing Fund Fee (BMF).50% of all gross revenues.
Holding Over – Royalty FeeThe royalty fee due during any holding over period will equal to twice the royalty fee otherwise due.
Lead Management System$0 to $5,000 per year.
Computer Hardware and Software Maintenance and Support$1,000 to $2,000 or more per year.
Other Education FeesVaries by course and duration.
International Leadership Academy (ILA) FeeNot to exceed $399 per attendee – the fee includes tuition, lodging and function meals only.
Liquidated DamagesVaries
Audit FeesCost of audit plus fees past due, interest, late charges and costs.
Other Education FeesVaries by course and duration.
Special AssistanceAs negotiated.
Late Charges and InterestNot to exceed 1.5% per month
Transfer/Assignment Fee$5,000
Costs and Attorney’s FeesVaries
IndemnificationVaries
TaxesVaries
InsuranceCost of insurance.
Testing/Inspection Fees to Approve SupplierThe franchisor does not currently charge fees for approval
Limited Purpose Office Initial Franchise Fee$1,000
One21$479 – $695 per registrant for One21

What Are Century 21 Franchise Qualification Requirements?

 

Potential Century 21 franchise owners should understand the responsibilities required to succeed in the competitive real estate market and the professional qualifications that the Century 21 brand looks for in prospective brokerages.

 

As Century 21 brokers may face competition from other subsidiaries of Realogy Corporation, having prior experience in the real estate business is a significant advantage, though not a requirement.

 

Real estate agents and business owners with a strong sense of purpose and an outgoing, proactive demeanor are given preference by the Century 21 brand.

 

New businesses are also welcome but must meet specific financial criteria and professional qualifications. The brand is heavily focused on innovation and clients, so they expect potential franchisees to demonstrate the ability to become successful when it comes to real estate.

 

What Are The Benefits Of Owning A Century 21 Franchise in USA?



By joining hands with the most respected real estate franchise, you can be at the industry’s top. The company’s tools and industry knowledge are always there to help franchisees achieve their goals as an entrepreneur.

 

The system is designed to lighten their workload, expand their network, and help them grow their company. Here are some benefits of owning a Century 21 Franchise in USA:

 

Best-In-Class Marketing

 

The company has joined hands with best-in-class service providers in the industry to help franchisees drive awareness and results in their local markets. In addition, the company uses products from MoxiWorks and other recognizable names that bring our brand story to life.

 

Comprehensive Learning And Support

 

The company allows franchisees to grow constantly with CENTURY 21 University, a platform designed to transform your skills with free and affordable learning options. In addition, Century 21 offers coaching/ learning opportunities for brokers, managers, and sales associates.

 

Global Exposure

 

The company’s strong worldwide presence helps franchises expand their referral network and geographic footprint and increase local visibility.

 

In-Market Support

 

The Century 21 System offers franchise users access to consultants specializing in strategic growth, business planning, data analytics, and more.

 

Century 21 Franchise In USA: Application Process

 

To get started on owning your own Century 21 franchise in USA, follow these simple steps:

  • Click on the ‘Enquiry’ button available on the homepage to send a proposal and arrange an initial conversation. Upon submission, you’ll receive a confirmation receipt.

 

  • If your application meets the company’s criteria, the franchise team will then inform you about potential locations in your area.

 

  • The next step is to attend a face-to-face meeting with the Century 21 team, which allows both you and them to review your eligibility for the business and allows you to ask questions about it in more depth.

 

  • If everything goes well, you can discuss the franchise agreement’s terms and move onwards to the induction and training process.

 

A Review Of Training & Support Offered by Century 21 Real Estatae LLC

 

The Century 21 training program intends to help its franchisees at all stages of the business, from assisting them to building a transparent business model before their launch. In addition, the company ensures you fully understand the scale of the sales and letting opportunities available in your chosen location, so you can take full advantage of them.

 

Before your franchise agreement, the team will also work with the franchise to assist them in finding the best location in their preferred area to ensure a successful and thriving business.

 

Additionally, the company offers comprehensive business management training, as well as access to Century 21 bespoke software to new franchisees. Franchisees will also get extensive marketing training and support, helping them to understand how to use print and digital marketing most effectively to promote the business.

 

Once done with training sessions, Century 21 UK’s franchise team will also assist franchise owners in setting up the physical business by finding suitable business premises and advising on refurbishment in line with the brand’s image and style.

 

The team will also assist franchisees with recruiting sales staff, setting up technology, and providing a customized brand website for them. It also offers free induction courses to make sure they are entirely up to speed with how the business operates.

 

Prior to building the premises, Century 21 will also work with franchisees to plan a grand launch event, which will include harnessing press coverage to increase awareness of the brand across the geographic territory. The team will also provide ongoing marketing assistance and guidance on future marketing campaigns.

 

In addition, franchisees also have the chance to take further courses and undergo study programs to develop skills – with over 1,500 training days available. With continued professional development and assistance, Century 21 is highly invested in assisting its franchisees in growing and succeeding.

 

Training & Support Offered
On-The-Job TrainingNo
Classroom Training21.75 hours
Additional TrainingAt conventions & workshops; ongoing training via Century 21 Learning System
Ongoing Support

●       Grand Opening

●       Online Support

●       Newsletter

●       Field Operations

●       Site Selection

●       Meetings & Conventions

●       Security & Safety Procedures

●       Proprietary Software

●       Franchisee Intranet Platform

Marketing Support

●       National Media

●       Website Development

●       Email Marketing

●       Social Media

●       Co-op Advertising

●       Ad Templates

●       SEO

 

Conclusion

 

Owning a Century 21 franchise in USA is a profitable business opportunity. Today, the company is among the renowned real estate brands in the United States and around the globe, with offices that span 80 countries and multiple continents.

 

The brand puts innovation at its core, leading to the implementation of unique franchising models where brokers are allowed to highlight their own unique company personality.

 

The adaptability to local real estate markets and high client satisfaction standards have resulted in Century 21 winning numerous awards over the years.


Faq’s

Century 21 charges a franchise fee of up to $25,000, with a total estimated initial investment range of $24,700 to $451,350.

Century 21 has been franchising since 1972. Today, the company has approximately 13,200 independently operated franchised broker offices, which indicates how good this franchisor is.

Yes, Century 21 franchise in USA offers a veteran discount.

Yes, Century 21 is a US-based real estate company with a global presence.

Century 21 doesn’t provide information about the franchise’s future financial performance or the past financial performance of franchised outlets.

No, the company doesn’t provide finance to franchisees. However, franchisees may apply for loans from third-party lenders.

No, a home-based franchise opportunity is not available through Century 21.

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