How Does the Realty Executives Franchise Work?

The Business sells approved real estate services to the general public. The FDD expressly permits leasing, listing, purchasing, referrals, selling, trading, lead generation, auctions and similar real estate services; it does not restrict the customers the franchisee may serve.

Demand can come from buyers, sellers, tenants, landlords and referral relationships. The franchisee sets customer pricing. A Referral-Only Licensee may refer prospective buyers or sellers but does not represent transaction parties; participating in a Transaction makes that person a Salesperson for FDD purposes.

Official consumer channels include property search, seller inquiries and agent or office discovery. The FDD also permits local advertising, social media and alternative digital channels subject to brand and Territory rules.

FDD basis: 2026 FDD, Item 1, pp. 2-3; Item 6, pp. 10-13; Item 16, p. 35; Franchise Agreement §§8.3 and 8.7, pp. 7-8. Official consumer references: selling-services page and agent and office search.

The FDD does not prescribe a universal buyer-or-seller transaction script. It does prescribe the brokerage operating cycle around staffing, lead channels, authorized services, Broker supervision, Transaction records and PrimeAgent reporting.

FDD basis: 2026 FDD, Item 6, pp. 10-14; Item 11, pp. 25-28; Item 15, pp. 34-35; Franchise Agreement §§8.6, 9, 10.2-10.4 and 11, pp. 8-11. The Manual TOC, Exhibit E, includes PrimeAgent transaction entry, contact management, brokerage roster management, lead settings, website management and listing automation.

At least one owner must be the Managing Principal. Day-to-day management may be delegated to a third-party manager, but the Managing Principal retains ultimate responsibility; the model is therefore expressly manager-runnable, not described by the FDD as absentee ownership.

FDD basis: 2026 FDD, Item 15, pp. 34-35; Item 16, p. 35; Franchise Agreement §§8.6 and 11, pp. 8 and 11.

PrimeAgent and the franchisor-provided broker website are the clearest source-restricted operating inputs. The franchisee must also maintain internet-capable computer systems, email capability and accounting software, while the franchisor can change required technology and supplier specifications.

Item 8 says current source-restricted goods and services are limited to PrimeAgent and broker websites, while also stating that certain third-party vendors are source-restricted and may change. Those third parties are not identified in the FDD. Realty Executives Relocation Services, LLC is an approved optional referral-service supplier; the franchisor holds a 25% minority interest but states it is not an affiliate because there is no common control.

The franchisor does not have independent access to the franchisee's accounting data in ordinary operation, but it may inspect computer systems and access data during an inspection. It may also require future hardware or software upgrades and designate new tools as mandatory or optional.

FDD basis: 2026 FDD, Item 8, pp. 17-18; Item 11, pp. 24-28; Franchise Agreement §§8.2, 8.4, 8.5 and 15, pp. 7-8 and 13. Official technology background: PrimeAgent technology overview.

The exclusive Territory primarily protects Realty Executives Office placement, not customers or property. Other system offices may serve clients or properties inside the Territory, while the franchisee may generally serve clients and properties outside it subject to the Manual and targeted-marketing restrictions.

A standard Territory may be defined by address, ZIP codes or other boundaries; a single-point franchise can limit exclusivity to the approved Office premises. The franchisee may open multiple Offices inside the Territory without a contractual maximum, but must keep at least one designated Office open. Physical and virtual Office addresses outside the Territory require franchisor approval.

Alternative distribution channels, including websites and digital marketing, are currently permitted, but the franchisor can prescribe guidelines and revoke channel permissions. One stated rule prohibits targeted marketing into another assigned Territory. There is otherwise no general restriction on which customers the Business may solicit.

FDD basis: 2026 FDD, Item 12, pp. 29-31; Franchise Agreement §9 and territorial provisions incorporated through Attachment B. Official regulatory context for brokerage referral arrangements: CFPB Regulation X §1024.14.

Item 20 shows a predominantly franchised U.S. system at year-end 2025, while the total U.S. outlet count declined during the year. The chart below uses Table 1 because its current outlet composition reconciles exactly.

Item 20 reports no outlet transfers to new owners other than the franchisor during 2023-2025, plus 20 franchised openings and 55 terminations in 2025. These counts describe system movement, not unit-level performance; Item 19 provides no financial performance representation.

FDD basis: 2026 FDD, Item 19, pp. 39-40; Item 20, Tables 1-5, pp. 40-43. Official current-company context: Realty Executives newsroom.

The 2026 FDD defines the operating framework, but several variable or internally inconsistent details should be confirmed in the current Franchise Agreement attachments, Manual and technology schedule before a buyer models day-to-day operations.

• 1Salesperson Quota: confirm the exact negotiated quota in Attachment F and the timing of any increases, because quota performance can affect Territory rights and reporting economics.
• 2Source-restricted third parties: ask for the current named list. Item 8 says some third-party vendors are source-restricted but does not identify them.
• 3Technology schedule: confirm the current written broker-website and PrimeAgent enforcement terms. Different sections of the 2026 FDD use inconsistent dollar figures, although the underlying technology requirements are consistent.
• 4Item 20 Table 4: ask the franchisor to reconcile the 2025 company-owned movement columns. Table 1's year-end composition reconciles, which is why the chart above uses Table 1.
• 5Local brokerage law: verify the licensed Broker and branch-manager structure required in the target state, because the FDD makes those staffing duties dependent on applicable law.

FDD basis: 2026 FDD, Items 6, 8, 11, 12, 15 and 20; Franchise Agreement §§8.5, 8.6, 9, 10.3 and 11. For consumer-facing transaction context, see the official home-selling process page.