How To Start Century 21 Franchise in USA : Fees, Application Process & Opportunities
Century21 Franchise In USA: Fees, Application Process & Opportunities
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.
- Initial Investment: $24,700 – $451,350
- Net-worth Requirement: $100,000
- Initial Franchise Fee: $25,000
- Ongoing Royalty Fee: 6%
- Ad Royalty Fee:5%
Initial Investment And Startup Costs
|Estimated Initial Investments/Costs|
|Initial Franchise Fee||$0||$25,000|
|Real Estate and Improvements||Varies (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|
|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|
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|
|Royalty Fee||6% of gross revenue.|
|Minimum Monthly Royalty Fee||$500 per month.|
|Property Management Fees||1.5% of gross revenue from property management services.|
|Holding Over – Royalty Fee||The royalty fee due during any holding over the period will equal to twice the royalty fee.|
|Minimum Annual Royalty Fee||Varies|
|CRM and Consumer Platform||Varies|
|Brand Marketing Fund Fee (BMF)||.50% of all gross revenues.|
|Holding Over – Royalty Fee||The 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 Fees||Varies by course and duration.|
|International Leadership Academy (ILA) Fee||Not to exceed $399 per attendee – the fee includes tuition, lodging and function meals only.|
|Audit Fees||Cost of audit plus fees past due, interest, late charges and costs.|
|Other Education Fees||Varies by course and duration.|
|Special Assistance||As negotiated.|
|Late Charges and Interest||Not to exceed 1.5% per month|
|Costs and Attorney’s Fees||Varies|
|Insurance||Cost of insurance.|
|Testing/Inspection Fees to Approve Supplier||The 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:
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.
The company’s strong worldwide presence helps franchises expand their referral network and geographic footprint and increase local visibility.
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|
|Classroom Training||21.75 hours|
|Additional Training||At conventions & workshops; ongoing training via Century 21 Learning System|
● Grand Opening
● Online Support
● Field Operations
● Site Selection
● Meetings & Conventions
● Security & Safety Procedures
● Proprietary Software
● Franchisee Intranet Platform
● National Media
● Website Development
● Email Marketing
● Social Media
● Co-op Advertising
● Ad Templates
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.
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.