How Much Does a Realty Executives Franchise Cost?

The 2026 Realty Executives FDD discloses a Total Estimated Initial Investment of $54,700 to $443,500 for one U.S. real estate brokerage franchise. The low end assumes a virtual Office with no rent or real estate improvement expense; the high end assumes a physical Office with substantial premises costs. The disclosure does not publish separate totals for virtual, shared-space, executive-suite, conversion, or conventional physical-office formats.

Key cost figures

Sources: 2026 FDD, Item 5, pp. 7–8; Item 6, pp. 8–15; Item 7, pp. 15–17.

The 2026 startup table combines the Initial Franchise Fee with training travel, Furniture and Equipment, Office Supplies, Signage, premises expense, Annual Insurance, Professional Fees, and Additional Funds. The official table uses one range for the franchise rather than separate totals for each Office arrangement.

Source: 2026 FDD, Item 7, pp. 15–17.

The premises line is the decisive difference. The low end assumes a virtual Office and therefore assigns $0 to Rent and Real Estate Improvements. A physical Office may require rent, deposits, signage, furniture, equipment, and leasehold improvements, with the combined premises line reaching $250,000.

The FDD says a typical physical Office ranges from 500 to 6,000 square feet and uses a 1,000-square-foot average for context. It assumes lease rates of $1.75 to $5 per square foot per month, while warning that region, lease type, negotiating history, and landlord contributions can move the result. The franchisor does not help select the premises, negotiate the lease, construct or remodel the Office, obtain permits, or hire staff.

Sources: 2026 FDD, Item 7, pp. 16–17; Item 11, pp. 25–26.

The Initial Franchise Fee is normally paid when the Franchise Agreement is signed, while most third-party startup costs are paid as incurred or under vendor and lease arrangements. The Office generally must open within 90 days after signing.

The FTC requires the FDD to be delivered at least 14 calendar days before a binding agreement or franchise-related payment. The FTC guidance on reviewing a Franchise Disclosure Document explains that review window and the importance of reading the attached agreements, not only the cost table.

Sources: 2026 FDD cover; Item 5, pp. 7–8; Item 7, pp. 15–17; Item 10, pp. 20–21; Item 11, pp. 23–29.

The 2026 FDD does not label a conventional Royalty Fee calculated on brokerage gross sales. Instead, Realty Executives charges a Monthly Service Fee under either the Flat Fee Model or Flex Model, plus a Territory Fee, Marketing Fee, Technology Fees, and event or training charges when applicable.

Source: 2026 FDD, Item 6, pp. 8–15; Item 11, pp. 21–28.

The Territory Fee is based on the population assigned to the Territory when the Franchise Agreement is signed. The franchisor identifies the U.S. Census Bureau population data as the source for that calculation and may adjust the fee no more than once every two years as population changes. An approved single-point Office outside the Territory can add $500 to $1,000 to the monthly Territory Fee.

The FDD also permits annual fee increases tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers. The Bureau of Labor Statistics CPI overview explains the CPI-W series named in the Franchise Agreement.

Both models have a $1,000 monthly floor, but the calculation above that floor differs. The choice belongs in the Franchise Agreement and directly affects how Salesperson Count, Salesperson Quota, and Monthly Sales Commissions enter the fee formula.

PrimeAgent supports the reporting required by the Flex Model. The franchisor's official PrimeAgent technology overview describes the proprietary portal; the current fee amounts and reporting consequences come from the 2026 FDD, not the older overview page.

Source: 2026 FDD, Item 6, pp. 11–14; Item 11, pp. 26–27.

Transfer, audit, late-payment, extension, additional training, supplier-review, and default-related charges are outside the normal opening range unless an initial payment is specifically included. Their timing depends on a later event or contractual breach.

• Additional initial trainees: $800 per person beyond the Managing Principal and two additional people, due 10 days after invoicing. Other training can cost up to $1,200 per person per program.

• Annual event: $400 to $1,750 per person, currently stated as $699. At least one qualifying event must be attended each year, or the minimum meeting fee for one person is payable.

• Transfer Fee: $15,000, due before an approved transfer. The transferee also must complete disclosure, qualification, licensing, training, and new-agreement requirements.

• Audit Fee: $9,000 plus the actual audit or inspection costs, including specified professional and travel expenses, when an audit finds a fee underpayment or understatement of at least 3%.

• Late and declined payments: late charge equal to the lesser of 24% of the past-due amount, prorated daily, or the highest lawful rate; plus $90 for each returned check or declined ACH or credit-card payment.

• Interim Term Extension Fee: $600 per month plus $100 multiplied by Salesperson Count, in addition to all other fees, if operations continue after the term without timely renewal documentation.

• Supplier review: actual costs incurred to review a proposed non-approved supplier or product. Required purchases and licenses otherwise vary; Item 6 says there are currently none from the franchisor beyond Technology Fees.

• Serious default-related obligations: actual taxes, attorneys' fees, indemnity damages, collection costs, and $300,000 for each unauthorized use of protected Know-How when the specified trigger occurs.

Sources: 2026 FDD, Item 6, pp. 8–15; Item 17, pp. 35–39.

The franchisor may finance up to 100% of the Initial Franchise Fee, but approval and terms are discretionary. Item 10 does not promise financing for premises, equipment, working capital, monthly fees, or third-party obligations.

Amount financed: up to 100% of the Initial Franchise Fee, or another amount the franchisor considers appropriate.

Interest and APR: 8% to 20%.

Repayment period: 3 months to 5 years, generally in equal monthly installments, with possible interest-only periods or a balloon structure.

Security: all equity owners of an entity, and their spouses, may be required to sign Personal Guarantees.

What is not financed: monthly fees are not intended to be financed, and it does not guarantee the franchisee's notes, leases, or other obligations.

Source: 2026 FDD, Item 10, pp. 20–21 and Exhibit J.

Two material inconsistencies appear inside the 2026 disclosure package: the maximum Total Estimated Initial Investment and the Broker Website Technology Fee. They should be resolved in writing before payment or signature.

• Confirm the corrected startup maximum and obtain any amendment or written clarification issued after April 15, 2026.

• Verify the Broker Website amount in the exact Franchise Agreement and fee schedule presented for signature.

• Match the Territory population, Salesperson Quota, and chosen Monthly Service Fee model to the agreement attachments.

• Separate refundable landlord deposits from nonrefundable franchisor fees and confirm which premises improvements the landlord will fund.

• Budget owner compensation separately because Additional Funds expressly exclude salary for the owner.

• Request the most recent FDD and quarterly updates before signing; the FTC Consumer's Guide to Buying a Franchise explains this due-diligence step.

Sources: 2026 FDD cover; Item 6, pp. 14–15; Item 7, p. 15; Item 11, pp. 21 and 27; Franchise Agreement, Attachment E, p. 1.

The official 2026 startup range is $54,700 to $443,500, but it is not the same as the Initial Franchise Fee, cash due on signing, Liquid Capital, Net Worth, or recurring monthly fees. The main startup variable is the Office: a virtual arrangement can remove the premises line, while a physical Office can add rent, Signage, Furniture and Equipment, and leasehold improvements.

The most important unresolved cost question is not a speculative local budget. It is which Office arrangement, Territory population, Salesperson Quota, Monthly Service Fee model, Broker Website amount, and premises obligations will appear in the final documents. Those inputs determine both the cash milestones before opening and the fees that continue afterward.