How Much Does a Realty World Franchise Cost?

Realty World’s 2025 Franchise Disclosure Document discloses four different U.S. initial-investment ranges, so there is no single valid Realty World franchise cost. A conversion office is estimated at $34,200 to $110,000; a start-up office at $60,000 to $195,000; the MOBI™ Program at $18,600 to $58,800; and the Boutique Conversion Program at $21,000 to $83,500. Each total already includes its applicable Initial Franchise Fee and its Item 7 allowance for eight months of Additional Funds.

The start-up office has the highest disclosed low and high endpoints because it includes premises and office-equipment categories that are absent from the virtual programs. The MOBI™ Program has the lowest total range, but its Item 7 vehicle line does not represent the full purchase price of a new vehicle.

The endpoints in this comparison serve different purposes from a cash-due-at-signing figure. The total includes amounts expected to go to landlords, contractors, insurers and other vendors, while only the applicable signing fee is identified as a payment to the franchisor at the outset. A low endpoint is not a promised quote for a particular market, and a high endpoint is not necessarily a contractual ceiling when an excluded purchase, required upgrade or later change falls outside the listed assumptions.

For budgeting, the format should be selected before any arithmetic is performed. Combining the least expensive line from one schedule with the most expensive line from another would create a number that does not correspond to any offered agreement. The same caution applies to a midpoint: the disclosure does not publish a typical case, expected case or average case. The useful comparison is therefore structural—what assets and payment obligations the chosen model requires—rather than a single blended figure.

A useful internal budget can preserve the disclosure without pretending that it predicts a particular project. Create one column for the official low and high limits, one for the written quote received, one for the person or company to be paid, and one for the expected payment date. Differences should be explained by a document, such as a lease proposal, supplier invoice or insurance indication. This approach keeps the published figures visible while showing exactly why the planned cash requirement may sit at a different point inside—or, for a disclosed exclusion, outside—the range.

That classification affects more than the headline total. It determines whether the buyer must secure premises, whether existing furnishings can be retained, whether exterior branding may be needed and whether transportation becomes a required operating asset. It also changes who receives the money. Premises expenses may be negotiated with a landlord or contractor, insurance is paid to an insurer, and signs or supplies are purchased from vendors that meet the system’s standards.

Before comparing quotes, the buyer should have the proposed agreement identified in writing. A marketing label alone is insufficient because an existing brokerage can still face a substantial refurbishment obligation, and a virtual arrangement can still require supplies, insurance, branding and working capital. The practical question is not only whether an office is required; it is which existing assets the franchisor will approve and which must be replaced, modified or newly acquired before the business can operate under the marks.

Each total is a sum of the categories in its own format schedule. A category shown for one format should not be imported into another format, and “not listed” does not mean the buyer will never incur a similar operating expense—it means that category is not a separate line in that format’s official initial-investment table.

Office-based and existing-office schedules

The existing-office schedule contains fewer separate categories because it assumes an operating brokerage is being converted. Its published total includes branding, supplies, insurance and working capital, while any refurbishment needed to meet current standards remains unresolved.

Virtual and mobile program schedules

The two no-office programs still have different asset contracts. The mobile schedule includes transportation and vehicle branding, while the boutique schedule includes building and yard sign ranges but no separate transportation line.

The phrase “as arranged” in the disclosure is important for cash planning. It means the exact deposit, installment schedule or invoice date is generally established with the third-party payee rather than fixed by the franchise document. Two buyers using the same format can therefore reach the same official total range while facing very different payment calendars. One may pay a landlord deposit early, another may receive a tenant-improvement allowance, and another may purchase equipment in stages.

The category schedule should be converted into a dated source-of-funds plan without changing the official estimates. Each vendor quote should state whether tax, freight, installation, deposits and recurring service charges are included. Where the disclosure lists a broad range, the quote should be mapped to the exact category rather than added as a new category automatically. This prevents the same expense from being counted once in a contractor proposal and again in a general opening-cost allowance.

Required trademark-bearing materials must meet prescribed specifications, but the disclosure generally allows approved sources rather than a single mandatory supplier for signs, stationery, business cards, furniture, fixtures and equipment. It estimates that proprietary materials and the designated internet service represent 10% to 40% of total purchases connected with establishing and operating the business. Supplier discounts described in the document may range from zero to 50%, but they are not guaranteed to continue and should not be used to reduce the official range without a current quote.

The principal Item 5 payment is the Initial Franchise Fee: $18,000 for a Conversion Office or Start-up Office, $2,500 under the MOBI™ Program, and $3,500 under the Boutique Conversion Program. It is due when the Franchise Agreement is signed, is fully earned at signing and is nonrefundable. A buyer purchasing multiple franchises pays a separate Initial Franchise Fee for each Franchise Agreement.

Standard agreement fee

$18,000, due in a lump sum when the Franchise Agreement is signed.

MOBI™ fee

$2,500, due when the applicable Franchise Agreement is signed under the MOBI™ Program.

Boutique Conversion fee

$3,500, due when the applicable Franchise Agreement is signed under the Boutique Conversion Program.

Refundability

Item 5 states that the Initial Franchise Fee is nonrefundable under all circumstances and fully earned at signing.

Referral program

Existing franchisees may receive 10% to 50% of an Initial Franchise Fee for qualifying referrals under the Share the Wealth Program; this is not a buyer discount disclosed for every applicant.

When does the rest of the opening cash leave the buyer?

Most opening cash is paid in stages rather than entirely at signing. The contract payment comes first, followed by vendor, premises and insurance payments according to the selected format and the arrangements made with each payee.

1. At agreement signing: pay the applicable signing fee, unless the franchisor has approved and documented installment terms in its promissory note. The obligation is created concurrently with signing.

2. Before opening: pay lump-sum categories specifically marked “Prior to Opening,” including Start-up Supplies and, for MOBI™, Vehicle Signage. Other Item 7 costs are paid “as arranged” to landlords, contractors, insurers or vendors.

3. During site and launch preparation: arrange premises, equipment, signage and insurance applicable to the selected format. Insurance must be in force before opening. The disclosure says a business typically opens about 90 days after signing, or about four to six weeks under the mobile or boutique addendum; the contractual outside deadline is 180 days, reduced to 90 days for the mobile program. Missing the applicable deadline can permit termination and retention of the signing fee.

4. After services begin: monthly and annual Item 6 obligations start on their disclosed schedules, including fees due on the 25th day of the month, TechPack billing from signup, and the annual Website Fee.

The sequence matters because the full investment is not paid on one day. The signing payment creates the contractual commitment; vendor deposits and prepaid expenses follow as the opening plan becomes concrete; and recurring charges begin according to their own billing dates. A buyer who has enough cash for the signing payment but not for the next wave of deposits has not funded the disclosed opening plan.

The payment calendar should also preserve the required disclosure-review period. The buyer should receive the current document and attachments before any binding payment is made, then compare the final agreement, addenda and promissory note with the versions attached to that disclosure. Any negotiated installment arrangement should state the down payment, due dates, default consequences and whether the financed amount changes what must still be paid to third parties before opening.

Additional Funds are already included in each disclosed total. The 2025 FDD estimates that the allowance will support eight months of ongoing expenses, including payroll and utilities, to the extent those expenses are not covered by operating receipts. The disclosed ranges are $13,000 to $60,000 for Conversion and Start-up Offices, $10,000 to $30,000 for MOBI™, and $13,000 to $45,000 for Boutique Conversion.

The FDD does not expressly say that owner compensation is included in Additional Funds. It also does not provide a separate local rent, wage or utilities forecast. Those omissions matter because the eight-month period is an official duration estimate, not a guarantee that the stated amount will cover every buyer’s operating conditions.

The eight-month allowance should be read as a disclosed planning period, not as a promise that the business will become self-funding by the end of that period. The actual draw on cash depends on the timing of payroll, utilities, insurance, subscriptions, local promotion and other ordinary obligations. Because the disclosure does not specify an owner-pay assumption, a buyer who expects to take compensation during the opening period should treat that as a separate question requiring written clarification.

A disciplined funding schedule can keep this allowance distinct from one-time opening purchases. The opening budget records deposits, equipment and other setup costs once. The operating schedule then tracks the cash expected to be consumed month by month. Keeping those schedules separate makes it easier to see whether a lease deposit, prepaid premium or annual charge has already been included and avoids adding the same obligation to both the opening and working-capital columns.

The franchisor requires the franchisee to elect one of two continuing Royalty Fee and National Advertising and Promotional Fund structures when signing: the Percentage Fee Option or the Flat Fee Option. The election changes the fee basis, but it does not eliminate the separate Support Fee, technology obligations, local marketing obligation or other Item 6 charges.

Under the Flat Fee Option, The franchisor also permits a Limited Alternative Contribution once per calendar year for up to 50% of the office’s Sales Representatives, subject to the program terms. Revenue generated by selected representatives is then placed on the Percentage Fee Option for Royalty Fee and Fund Contribution calculations. “Gross Revenue” is defined broadly in Item 6 and generally permits a deduction for referral fees paid to non-affiliated real estate brokerage firms, but not for broker or employee payments, multiple-listing fees, insurance, business expenses or taxes.

Other continuing cost obligations

The elected royalty and advertising formula is only part of the continuing cost structure. Fixed support, technology, local promotion, website, membership, directory and training obligations can create separate invoices or direct third-party payments.

Support Fee

$225 per month, due on the 25th day of each month.

TechPack Fee

$39.99 per month per electing user. At least 75% of the Sales Representatives registered with the office must register to use TechPack. Optional technology items have additional fees.

Local advertising

At least 1% of Gross Revenue, in addition to the Fund Contribution. Realty World does not collect this amount but may require expense reports.

Online lead generation

A required service selected by the franchisee, estimated in Item 11 at $50 to $100 per month.

Realty World Website Fee

$300 per year per office, plus applicable taxes, due on the first day of each year.

Annual Awards Convention

$395 per attendee, invoiced at least one month before the event, plus the attendee’s travel, lodging and related costs if held in person.

Local MLS membership

The office and each affiliated licensee must remain members of the applicable local multiple listing service. The disclosure does not state a membership cost.

Approved Website and directories

The franchisee must maintain an approved website at its own expense unless the selected TechPack module satisfies the requirement, and must pay for required directory advertising. No fixed amount is disclosed.

Additional training

Training requested beyond the included initial program is charged at the franchisor’s then-current per diem; travel and living costs remain the franchisee’s responsibility.

The monthly obligation can change even when the agreement remains the same. Under the headcount-based election, adding or removing licensed people changes the calculation, subject to the stated cap. Under the percentage election, the amount changes with the disclosed fee base and the annual threshold. In either case, the fixed support charge, technology participation, local promotion and annual charges remain separate unless the franchisor confirms otherwise in the governing documents.

The disclosure also authorizes electronic withdrawal from the designated business account for amounts due under the agreement. That makes reporting accuracy and cash timing operationally important: the account must contain enough funds on the due date, and the office must report new affiliations promptly. A buyer should obtain a sample monthly statement that identifies each line, its calculation basis and the period covered, without using that sample to project future operating results.

For monthly control, the buyer can build a calculation sheet that mirrors the contract rather than forecasting business performance. The sheet should identify the selected method, the reporting period, the count or percentage base, any annual threshold, each fixed charge and the withdrawal date. It should also show which amounts are paid directly to outside providers. That record makes it possible to compare an invoice with the governing formula and to identify whether a public package price omits a separate contractual charge.

Several Realty World charges are not ordinary monthly operating fees. They become payable when a renewal, transfer, reporting failure, audit, re-inspection, default or other specified event occurs.

• Late Payments: interest at the lesser of 10% per year or the highest rate allowed by law on payments that are 10 days overdue.
• Late Reporting of Sales Representatives: $250 on demand if a new affiliation is not reported within five days.
• Renewal Fee: $1,500 with the written renewal notice. Item 17 also permits required remodel or relocation to then-current standards, with no fixed cost disclosed.
• Transfer Fee: $3,500 at transfer. Transfer approval can also require payment of outstanding amounts, training, lease transfer and an upgrade or remodel within 45 days if necessary.
• Audit: $500 to $5,000, payable 15 days after the audit report, if underreporting is 5% or more or the audit results from failure to provide required records.
• Re-inspection: Realty World’s actual costs, including supplier fees, travel, room and board and employee compensation, after identified standards failures or a blocked inspection.
• Indemnification and collection costs: variable amounts as incurred, including specified legal and professional costs in applicable circumstances.
• Default damages: the net present value of amounts that would have become due for the remaining Franchise Agreement term when the agreement is terminated for specified franchisee defaults or by the franchisee without cause.

Item 6 also states that dollar-denominated fees automatically increase by 3% annually after the franchisee’s 10th anniversary. Realty World may vary, waive or negotiate fees and may offer incentive or bonus plans, but the FDD does not promise a standard buyer discount or a fixed duration for any incentive.

These later charges show why the opening total is not a lifetime cost cap. Some are avoidable through timely reporting, payment and compliance; others arise from ordinary lifecycle events such as renewal or a sale of the business. The fixed administrative amount may also be only one part of the event. A transfer can involve training, lease work and upgrades, while a renewal can require the premises and branding to meet standards in effect years after the original opening.

Because several consequences are stated as actual cost, variable cost or an uncapped obligation, they cannot be converted into a reliable reserve from the disclosure alone. The buyer’s review should identify the trigger, the party controlling it, the notice or cure period and the documentation used to calculate the charge. That produces a clearer picture than treating every conditional item as either zero or guaranteed.

The 2025 disclosure does not state a minimum Liquid Capital requirement, Net Worth requirement or Non-Borrowed Funds requirement in the 2025 FDD. Its current public U.S. franchise pages also do not provide a documented threshold. Prospects should therefore treat any amount supplied by a salesperson or broker as unverified until it appears in a current written qualification standard.

The disclosure also separates stated financial thresholds from contractual liability. If the franchisee is an entity, its owners must personally guarantee all obligations under the franchise and related agreements. Each owner’s spouse must consent to the guarantee and acknowledge that marital assets are at risk. This guarantee is a contractual exposure, not a disclosed minimum-cash requirement.

Item 10 permits discretionary financing only for the $18,000 Initial Franchise Fee under a standard Franchise Agreement. The franchisor does not offer this arrangement for the MOBI™ Program or Boutique Conversion Program and does not finance the remaining Item 7 investment. The promissory-note terms are negotiated; no interest is charged while payments remain current, but a missed installment may trigger interest at the lesser of 18% per year or the highest lawful commercial-contract rate. Corporate shareholders must guarantee the note, no security interest is required, and default can accelerate the full balance plus collection costs.

The official franchise page states generally that Realty World will finance a franchise, but the current FDD is the controlling cost disclosure for the scope of that financing. See the official franchise website’s financing statement and compare it directly with 2025 FDD Item 10, pp. 24–25.

Financing the signing fee does not reduce the official investment or supply the remaining opening capital. It changes only the timing of one payment. The borrower must still fund premises, supplies, insurance, equipment, branding and working capital according to the selected schedule. Approval is discretionary, and the absence of a security interest does not remove the personal or shareholder guarantee described for a corporate borrower.

The absence of a published liquidity or net-worth threshold should not be mistaken for the absence of a financial review. It means the verified materials examined here do not provide a number that can be reported as an official qualification. A prospect should request the current written underwriting criteria and distinguish them from the amount shown in the opening-cost table: one addresses eligibility or funding capacity, while the other estimates expenditures for the business.

The Item 7 range is not a universal cap. The disclosure identifies several obligations whose final cost depends on the buyer’s premises, vehicle, staffing, market or later events.

• Conversion refurbishment: the conversion estimate excludes any amount needed to refurnish or remodel an existing office that does not meet current standards.
• MOBI™ vehicle purchase: a new vehicle may cost up to $50,000, while Item 7 includes only $0 to $800 for the Vehicle line.
• Building-sign installation: the $700 to $15,000 Conversion Office Building Signs estimate excludes installation costs.
• Training travel: initial training is provided without an additional training fee for two people, but the franchisee pays travel, living expenses, wages and workers’ compensation insurance. Online delivery may reduce those costs.
• Computer changes: no specific hardware is currently required, but The franchisor may require hardware or software within 90 days after notice, with no contractual limit on frequency or cost.
• Insurance changes: the FDD requires commercial general liability and professional liability coverage of $1,000,000 per occurrence and permits future increases or additional coverage.
• Renewal and transfer upgrades: Item 17 can require remodel, refurbishment or relocation to current standards without a fixed cap.
• Local operating conditions: the FDD does not provide city-specific rent, payroll, utility, licensing or permit forecasts beyond the categories and ranges it expressly discloses.

The most useful response to these uncertainties is documentation, not an invented local estimate. For premises, obtain the approved condition report, landlord proposal and contractor scope. For transportation, identify whether the plan uses an existing asset, a lease or a purchase. For insurance and technology, request the required specifications and current provider pricing. Each document should be dated and tied to the exact format under consideration.

Quotes should also separate mandatory work from optional enhancements. A contractor may propose improvements beyond the minimum standard, and a technology vendor may bundle optional services with required access. Without that separation, the buyer cannot tell whether a higher quote reflects the franchise obligation or a discretionary choice. The official range remains the disclosure benchmark, while the written quotes explain where the specific project may depart from it.

A buyer should verify the exact agreement, program addendum and fee election—not simply the public label used for the franchise format. The FTC’s franchise buying guide explains that the FDD must be delivered at least 14 calendar days before a prospect signs a contract or pays the franchisor or an affiliate.

• Match the proposed Franchise Agreement to the Conversion Office, Start-up Office, MOBI™ Program or Boutique Conversion Program Item 7 schedule.
• Obtain a written Item 6 fee worksheet showing the Percentage Fee Option or Flat Fee Option, Support Fee, Fund Contribution and TechPack users.
• Resolve the six-month versus 12-month Initial Franchise Fee installment inconsistency in writing.
• For MOBI™, document whether the plan assumes an owned vehicle, a lease payment or a purchase outside the Item 7 total.
• For a conversion, obtain the franchisor’s written office-standard assessment and contractor pricing for any required refurbishment.
• Confirm whether the current public $275 monthly statement is a bundled, introductory or partial amount and identify every excluded Item 6 obligation.
• Request the most recent FDD and any amendments or state addenda before relying on the August 29, 2025 figures.

The final review should use the exact versions that will be signed. Page references, schedules and addenda can change between annual updates or through state-specific changes, so a summary prepared from an earlier document should not replace the delivered paperwork. Compare every amount in the final agreement with the disclosure, identify any negotiated term, and keep written confirmation of how a bundled or promotional figure relates to the separate contractual obligations.

Verbal descriptions should be converted into precise questions: what is included, what is excluded, who receives the payment, when is it due, is it refundable, and what event can change it? The answers should point to a clause, schedule or signed amendment. This method does not create a new estimate; it tests whether the proposed transaction matches the cost structure described to the buyer.

The FTC Franchise Rule requires a 23-item disclosure document, and the FTC’s FDD review guidance emphasizes checking renewal, transfer and other contract contingencies rather than focusing only on the initial fee.

The verified cost contract is format-specific, not a single headline range. The mobile program sits at the lower end because it omits a physical office, while the new-office model reaches the highest endpoint because premises, equipment and working capital are all included. Conversion economics depend heavily on the condition of the existing brokerage, and the Boutique schedule sits between the mobile and office-based structures.

The Initial Franchise Fee is only one component of those totals. After opening, the buyer must also model the selected Royalty Fee and Fund Contribution structure, the $225 monthly Support Fee, TechPack participation, local advertising, the annual Website Fee and event-triggered charges. The most important unresolved questions are the complete monthly fee reconciliation for MOBI™ or Boutique, the financing-period inconsistency, and any office, vehicle, remodel or technology obligation that is not fully priced inside Item 7.

A sound decision record should preserve three layers separately. The first is the published disclosure, which defines the official boundaries and contractual categories. The second is the transaction paperwork, which states the exact election, addendum, negotiated payment terms and any state-specific changes. The third is the project file, which contains current quotes, deposits, due dates and assumptions for the particular office or mobile setup. Keeping those layers separate prevents a marketing statement from replacing a contract term and prevents a local quote from being presented as an official system estimate.

This separation also makes later updates easier to evaluate. When a new disclosure is delivered, the buyer can identify whether a change affects the signing payment, a recurring calculation, an asset requirement or a later-event obligation. Only the affected part of the project file then needs to be revised. The result is a capital plan that remains traceable to written evidence without creating an unsupported average, expected case or performance forecast.