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Real Living Real Estate Franchise ProfileReal Estate Franchises > Residential Brokerage |
What is the Initial Investment for a Real Living Real Estate Franchise?
To start a Real Living Real Estate franchise, the initial investment ranges from $33,145 to $198,821. This includes a franchise fee of $20,000. It's essential to be aware of ongoing fees, such as a 5% royalty fee on revenue and a 1% marketing fee. Having sufficient cash reserves is crucial, with a requirement of $33,145 to $198,821 in liquid capital. Additionally, prospective franchisees must possess a net worth between $100,000 and $500,000 to qualify for ownership.
What are the Financial Performance Metrics for Real Living Real Estate Franchisees?
Real Living Real Estate franchisees can expect an average annual revenue of $591,459 per unit, with a median revenue of $2,700,000. However, revenue can vary widely, with the lowest annual revenue reported at $7,500 and the highest reaching $40,000,000. The breakeven point for new franchisees is approximately 18 months, and the investment payback period is about 24 months. These figures highlight the potential profitability of the franchise, but individual results may vary based on location and management.
What are the Average Running Expenses for a Real Living Real Estate Franchise?
Running a Real Living Real Estate franchise involves various expenses. Rent typically ranges from $4,500 to $11,250 annually. Other costs, like business insurance, are expected to exceed $1,000. While specific figures for utilities, marketing, and administrative salaries are not detailed in the FDD, they are generally included in miscellaneous opening costs, estimated between $2,645 to $7,934. Understanding these expenses is vital for effective financial planning and operational management.
Is a Real Living Real Estate Franchise a Good Opportunity?
Investing in a Real Living Real Estate franchise may be a strong opportunity for those passionate about real estate and entrepreneurship. With a well-established brand and a network of support, franchisees receive training and resources to help them succeed. The real estate market can offer significant growth potential, especially for those who can effectively navigate local dynamics. If you have a commitment to customer service and a drive to succeed, this franchise may align well with your goals in the competitive real estate sector.
Real Living Real Estate Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Real Living Real Estate Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 179 | 169 | 154 |
| Net Change YoY | -10 | -15 | |
| Franchised Units | 179 | 169 | 154 |
| Net Change YoY | -10 | -15 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Real Living Real Estate franchise offers a range of initial investment costs, from a low of $33,145 to a high of $198,821. This flexibility makes it accessible for various aspiring entrepreneurs looking to enter the real estate market. The franchise fee is set at $20,000, which is a standard entry cost for many franchise opportunities in the industry.
Ongoing Fees
Franchisees are required to pay a royalty fee of 5% on gross sales, along with a marketing fee of 1%. These fees contribute to the overall support and resources provided by the franchise, helping to maintain brand visibility and operational efficiency in a competitive market.
Financial Performance
The average annual revenue per unit for Real Living Real Estate is approximately $591,459, with a median annual revenue soaring to $2,700,000. This demonstrates the potential profitability of the franchise, although revenue can vary significantly, with the lowest reported at $7,500 and the highest at $40,000,000.
Breakeven and Payback
Franchisees can expect to reach breakeven within 18 months of operation, with an investment payback period of around 24 months. This timeline provides valuable insight into the financial viability of the franchise, allowing potential investors to gauge their return on investment effectively.
Market Presence
As of 2019, Real Living Real Estate has seen a gradual decline in franchised units, from 179 in 2017 to 154 in 2019. This trend indicates a need for potential franchisees to consider market conditions and the competitive landscape when evaluating this opportunity.
Operational Insights
Franchisees should prepare for a variety of operational expenses, including rent, estimated between $4,500 to $11,250 annually, and business insurance costs exceeding $1,000. These factors are crucial for budgeting and financial planning, ensuring franchisees can maintain profitability while managing their operational responsibilities.
Frequently Asked Questions
The initial investment for a Real Living Real Estate franchise ranges from $33,145 to $198,821. This includes the initial franchise fee of $20,000 and other startup costs.