A Realty World franchise is a licensed real estate brokerage: the franchisee organizes the brokerage, affiliated Sales Representatives acquire and serve buyers and sellers, and transaction activity flows through local MLS and IDX infrastructure. Realty World Inc. controls the Marks, System Standards, required reporting, advertising approvals, technology participation, and compliance reviews.
What does a Realty World franchise sell, and who buys it?
The franchised business sells authorized real estate brokerage services to property sellers, buyers, and other clients permitted by applicable law; the operating revenue base is commissions, fees, and professional-service consideration generated by the brokerage and its licensed Sales Representatives.
The FDD defines a Realty World® Business as a real estate brokerage competing for residential and commercial listings, sales and related ancillary services. It does not publish a complete service catalog, commission schedule or customer-pricing policy. Item 16 requires every Business to offer the services Realty World Inc. specifies and prohibits unapproved offerings.
The official seller-service page describes consultation, property analysis, buyer screening, marketing and pending-to-closing support; the consumer website provides property-search and listing functions. These pages illustrate customer activity, while the Franchise Agreement and current System Standards determine required services.
Which operating format applies after opening?
Realty World uses one core Franchise Agreement with modified operating paths: a standard physical brokerage entered as a start-up or conversion, the two-agent MOBI™ mobile format, and the Boutique Conversion Program for an existing brokerage with three to five agents.
| Format | Physical operating base | Agent structure | Distinct operating asset |
|---|---|---|---|
|
Standard office Start-up or conversion path |
Approved location of at least 500 square feet. | No FDD-disclosed cap; licensed Sales Representatives affiliate with the Business. | Approved office, signage, furniture, fixtures and equipment. |
| MOBI™ Program | No dedicated office required; business operates through virtual applications. | No more than two agents. | Vehicle with Realty World-approved signage or wrap. |
| Boutique Conversion Program | Existing brokerage may select a Location or operate virtually. | Existing business with three to five agents. | Existing brokerage infrastructure adapted to System Standards. |
The public franchise-format page markets Standard, MOBI and Boutique choices. The FDD controls the details: MOBI is capped at two agents, Boutique Conversion applies to an existing three-to-five-agent brokerage, and a standard physical office requires location approval.
Evidence: 2025 FDD, Item 1, pp. 1-3; Item 11, pp. 29-30; Item 12, pp. 33-35; MOBI™ Program Addendum §§1-11; Boutique Conversion Program Addendum §§1-5.
How does work move through a Realty World brokerage?
The operating cycle begins with locally generated or digital demand, moves through licensed representation and MLS-supported transaction work, and ends with brokerage recordkeeping, monthly per-agent reporting, and franchisor review.
Generate and capture demand
- Actor
- Franchisee, Designated Manager and Sales Representatives.
- Action
- Use local advertising, directories, referrals, online lead generation and approved digital promotion.
- Required system or asset
- Approved Website, approved materials and lead-generation service.
- Output
- Buyer, seller or authorized-client inquiry.
Define the engagement
- Actor
- Licensed Sales Representative under Broker of Record supervision.
- Action
- Assess objectives, property, timing and representation needs using approved services and compliant client-contract terms.
- Required system or asset
- Brokerage forms and licensing procedures.
- Output
- Buyer-search or seller-listing assignment.
Build the market file
- Actor
- Sales Representative with office support.
- Action
- Analyze and position a seller’s property or establish buyer criteria and search inventory. The office and Sales Representatives must remain in good standing with the local MLS.
- Required system or asset
- MLS, IDX, listing data and approved website.
- Output
- Listing, search or showing activity.
Market and negotiate
- Actor
- Sales Representative with manager and broker oversight.
- Action
- Use approved materials, communicate with prospects, coordinate showings and manage offers under state law and brokerage procedures.
- Required system or asset
- MLS/IDX, approved Online Presence and communication tools.
- Output
- Accepted offer or transaction milestone.
Move to closing
- Actor
- Sales Representative, Broker of Record and transaction third parties.
- Action
- Track contingencies, financing and follow-up under licensed broker supervision.
- Required system or asset
- Transaction records and local closing infrastructure; no single platform is disclosed.
- Output
- Completed transaction and brokerage revenue.
Record and report
- Actor
- Franchisee, manager, bookkeeping staff and Technology Liaison.
- Action
- Record Gross Revenue and transactions by Sales Representative, maintain rosters and website data, report by the 20th, and retain records for three years.
- Required system or asset
- Prescribed records, MLS rosters and Franchise System reporting.
- Output
- Charge calculation and compliance audit trail.
Evidence: 2025 FDD, Item 6, pp. 8-15; Item 11, pp. 25-33; Franchise Agreement §§8.I, 9 and 10; official seller-service page.
Who performs each function, and must the owner work in the brokerage?
The owner is not contractually required to supervise the Business personally or attend training, but every unit must have a trained Designated Manager and a properly licensed Broker of Record; the Franchise Agreement requires the Designated Manager to work full time and supervise day-to-day operations.
The model may be manager-run because the Designated Manager need not own equity and the Broker of Record may be an owner, manager or employee. The FDD does not call the model absentee or semi-absentee, and legal-entity owners personally guarantee the obligations.
Designated Manager and Broker of Record
The Designated Manager is Realty World Inc.’s contact, completes initial training and works full time supervising daily operations. The Broker of Record supplies state-required brokerage supervision and may be the same person if licensing permits.
Sales Representatives
The term includes affiliated salespersons, broker associates, brokers, licensed assistants, the Broker of Record and managers. They may be employees or contractors, perform client work, satisfy MLS and insurance requirements, and receive franchisor training directly.
Technology Liaison and bookkeeping support
A Technology Liaison—owner, secretary, Sales Representative or third party—keeps office and agent website information current. The franchisee supplies bookkeeping, recordkeeping and administrative capacity; the franchisor does not promise hiring assistance.
Employment and compensation decisions
System Standards may address staffing levels, qualifications, training and appearance. The franchisee controls selection, promotion, pay, benefits, assignments and working conditions, and sets the Lifetime Income Program payment where legally permitted.
What does the franchisee control, what does the franchisor control, and where do third parties enter?
Daily brokerage execution remains with the franchisee, but the license is bounded by Realty World Inc.’s changing System Standards and by mandatory external infrastructure such as MLS access, IDX data, approved digital channels, insurance and technology providers.
Franchisee and unit team
- Recruit and compensate Sales Representatives.
- Deliver licensed representation and broker supervision.
- Run local lead generation and marketing.
- Maintain format assets and operating records.
Realty World Inc.
- Licenses the Marks and sets System Standards.
- Provides manuals, training and periodic advice.
- Controls Fund programs and advertising approval.
- Inspects operations and audits records.
Third-party dependencies
- Local MLS and IDX providers.
- TechPack providers and payment processor.
- Website-linking provider, insurers and suppliers.
- Transaction lenders, inspectors and closing parties.
System Standards may regulate marketing, staffing, business hours, client-contract terms, bookkeeping and reports. Realty World Inc. may modify standards, require hardware or software on 90 days’ notice, and conduct unannounced inspections, photography, interviews and record reviews.
Which systems and purchasing rules are mandatory?
The mandatory stack is defined more by participation and connectivity than by a fixed hardware list: MLS membership, IDX access, an Approved Website, franchise-system web participation, prescribed records, a Computer Software Licensing Agreement and TechPack enrollment for at least 75% of registered Sales Representatives.
- TechPack and Software PlatformThe platform incorporates changeable Third Party Providers for marketing, advertising and technology. Reallium describes RE TechPack as a consolidated real estate platform.
- Data rights and continuityProviders may change, and platform data may be deleted at termination without retrieval. Item 11 said the franchisor lacked independent access to locally stored data at issuance, while Franchise Agreement §10 preserves broad access rights to a required Computer System.
- Marked and office itemsProprietary Items must meet brand specifications. Preferred suppliers are not currently mandatory, and furniture, fixtures and equipment may come from any compliant source.
- Designated and alternative suppliersThe designated website-linking provider is mandatory. Alternative vendors for future required categories need approval, typically answered within seven days.
- Affiliate referralsNamed affiliate services were not mandatory purchases, but the agreement requires commercially reasonable purchase and referral efforts. Moventag currently presents a home-services and relocation marketplace.
- InsuranceCommercial general liability and real estate errors-and-omissions coverage are required, including additional-insured status for Realty World Inc. and designated affiliates. Sales Representatives must also satisfy the insurance requirements.
Evidence: 2025 FDD, Item 8, pp. 21-23; Item 11, pp. 28-30; Franchise Agreement §§8.D, 8.F, 8.H, 8.I and 10; Computer Software Licensing Agreement §§1-10 and Schedule A.
Where can the brokerage find customers, and what territory protection exists?
A Realty World franchise receives no exclusive or protected territory. It may advertise, solicit and accept business from customers in any location, but internet promotion must use the Approved Website or another Online Presence authorized under the Franchise Agreement.
Standard offices use one approved Location; MOBI and virtual Boutique units do not require a dedicated office. The Business must join the relevant local MLS. Physical relocation needs written approval based on factors including nearby Realty World® Businesses, accessibility, visibility and competition.
Realty World Inc. and affiliates may establish competing Realty World, HomeLife or Red Carpet brokerages and alternative channels without compensation to the franchisee. The office locator helps map branded offices, but it is not a territory grant and does not identify MOBI or Boutique units.
The disclosed U.S. system remained entirely franchised, while the ending outlet count declined by 24 units from 148 to 124 across the two-year span.
Source: 2025 Realty World Franchise Disclosure Document, Item 20, Tables 1, 3 and 4, pp. 44-47. Counts reconcile: franchised outlets equal total outlets because company-owned outlets equal zero.
What support is provided, and what should a buyer verify?
Realty World Inc. provides the Operations Manual, initial and replacement-manager training, Realty World University, vendor lists, the advertising fund, advertising review and periodic operating advice; the franchisee remains responsible for hiring, brokerage execution, equipment, local compliance and business results.
Realty World Inc. gives operating advice as it deems necessary, may require two additional courses totaling three business days annually, may train Sales Representatives directly, and requires annual convention attendance. The brokerage-support page describes Realty World University, Reallium, marketing and recruiting resources; the FDD defines the contractual commitment.
- Required services: obtain the current approved, required and prohibited service list for the format and state.
- Format population: ask how the 124 outlets divide among standard, MOBI™ and Boutique units.
- Technology inventory: identify current TechPack modules, providers, data ownership, export and offboarding.
- Manager-run requirements: confirm full-time expectations for virtual units and whether one person may hold both leadership roles.
- Transaction mechanics: verify lead assignment, commission disbursement, closing, complaints and follow-up; the FDD is incomplete here.
- Channel conflict: map Realty World, HomeLife, Red Carpet and alternative-channel activity because no territory is protected.
What is the practical operating conclusion?
Realty World is a licensed brokerage model earning commissions and professional-service fees from transactions handled by affiliated Sales Representatives. The franchisee must maintain licensed supervision, agent operations, local demand generation and records. Realty World Inc.’s strongest controls are System Standards, digital presence, reporting, inspection and technology participation. The key distinction is physical standard office versus mobile or virtual formats; the largest gap is the current transaction and commission-disbursement workflow.