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Real Estate 773 Units

Keller Williams Realty Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$182,430 – $335,697

Franchise Fee

$35,000

Royalty Rate

6.0%

Initial Investment Range

Low: $182,430 High: $335,697

The total initial investment to open a Keller Williams Realty franchise ranges from $182,430 to $335,697, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $35,000.

Midpoint estimate: $259,064

Franchise Fee

$35,000

One-time initial fee

The Keller Williams Realty franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Keller Williams Realty brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

0.5%

of gross revenue

Total Ongoing Fee Burden: 6.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Production Royalty 6.0 PCT Due on 7th business day of month for preceding month. Annual cap currently $3,000 per Associate, may increase to $4,000. Cap may be modified or eliminated at franchisor's discretion.
Profit Sharing Contribution N/A VARIABLE Due on 7th business day of month. Amount varies based on calculations in Attachment F. Used to compensate franchisees and Associates for recruiting.
Marketing Development Fee 83.33 FIXED Can be increased to $150/month or $1,000/year up to $1,500 total. Subject to CPI adjustment. For public relations, marketing and advertising materials.
Training Fees N/A VARIABLE Total approximately $10,200. Required courses must be completed within 6-18 months after effective date. Subject to CPI adjustment.
Regional Advertising Cooperative Fee 0.5 PCT Up to 0.5% of monthly GCI. Due on 7th business day. Subject to regional Associate Leadership Council discretion. No cooperatives currently exist. Subject to CPI adjustment.
International Advertising Fund Fee 0.5 PCT Up to 0.5% of monthly GCI. Due on 7th business day. Subject to International Associate Leadership Council discretion. May be initiated in future. Subject to CPI adjustment.
Franchise Systems Orientation Fee 399.0 FIXED Required for Operating Principal, Team Leader, Market Center Administrator, Franchisee's Principals and designated Franchisee's Group members. Subject to CPI adjustment.
New and Annual Associate Fees 25.0 FIXED Can increase to $40 per Associate. $25 initial payment to franchisor; annual renewal $20 to franchisor, $5 to Market Center. Due on association and annually in February. Subject to CPI adjustment.
Late Transmittal/Closing Fee 500.0 FIXED Accrues each day that monthly reporting is late. Subject to CPI adjustment.
Associate Technology Fee 65.0 FIXED Can increase to $150/month. May be charged as two separate fees not exceeding maximum. Due on 7th business day. Supports technology and agent sales platform. May be discounted for staff and Referral Associates. Subject to CPI adjustment.
G-Suite Fee 5.0 FIXED Can increase to $10/month. Due on 7th business day. Supports email and Google workspace accounts. Subject to CPI adjustment.
Transfer Fee 2000.0 FIXED Non-refundable plus franchisor's related expenses. Covers costs for reviewing and preparing transfer documentation. Subject to CPI adjustment.
Successor License Fee N/A VARIABLE Due before expiration. Must give notice 7-12 months prior to expiration. Subject to CPI adjustment.
Offering Fee 10000.0 FIXED Covers costs of reviewing proposed securities offering. Subject to CPI adjustment.
Holdover Fee 2.0 PCT Additional 2% on top of standard 6% Production Royalty. Payable if operating after term expiration without signing new agreement. Subject to CPI adjustment.
Liquidated Damages for Premature Closure during Holdover Period N/A VARIABLE Payable if Market Center closed during Holdover Period without required written notice.
Interest 18.0 PCT 18% or maximum rate permitted by law, whichever is less. California maximum is 10% per annum. Does not apply to profit sharing contribution.
Late Payment Fees 500.0 FIXED Accrues each day any payment is late. Not applicable in California (10% per annum maximum).
Accounting Fees N/A VARIABLE Due on demand if report variance exceeds 2%. Includes auditor's travel, lodging and other expenses.
Relocation Services Fee N/A VARIABLE Currently not required. May be imposed only if franchisees established in 75% of metropolitan area.
Business Center Fee 2500.0 FIXED Due when applying to open a Business Center. Covers review and documentation costs. Subject to CPI adjustment.
Mega Associate Office Fee 2500.0 FIXED Due when applying to open a Mega Associate Office. Covers review and documentation costs. Subject to CPI adjustment.
Non-REALTOR® Permitted Business Fee N/A FIXED Currently $0 but can increase to $2,500. Due when applying to open Non-REALTOR® Permitted Business. Subject to CPI adjustment.
Referral Associate Permitted Business Fee N/A FIXED Currently $0 but can increase to $2,500. Due when applying to open Referral Associate Permitted Business. Subject to CPI adjustment.
MC Operating Software License and Upgrade Fees N/A VARIABLE Up to $1,500 license fee at beginning of term; upgrades $100-$1,500. Subject to CPI adjustment.
Connect Fee 500.0 FIXED Can increase to $1,000/month. Due on 7th business day. Available to all active Associates. Subject to CPI adjustment.
Accounting Software Upgrade and Maintenance Fee 325.0 FIXED Can increase to $1,000/year. Due annually in July. Initial software cost included in initial franchise fee. Subject to CPI adjustment.
KPA Fee 500.0 FIXED Covers subscription service for behavioral assessments for Associates and potential Operating Principals, Team Leaders and MCAs. Subject to CPI adjustment.
Research and Development Fees N/A FIXED Currently no fee. Must conduct buyer/seller prospecting research and report results.
Deficiency Correction Fees N/A VARIABLE Due on demand. Franchisor may charge for costs to correct operational deficiencies.
Indemnification N/A VARIABLE Due on demand. Covers losses from various claims, violations, and lawsuits as detailed in FDD.
Attorney Fees and Related Costs N/A VARIABLE Due on demand. Imposed when franchisor must enforce obligations including confidentiality, default and termination.
Technology Fee 79.0 FIXED Can increase to $300/month. Due on 7th business day. Required to remain connected to electronic systems. Subject to CPI adjustment.
Conventions Assessment N/A VARIABLE Up to $1,000/year for annual conventions (Family Reunion, Mega Leadership Camp, Mega Camp). Separate costs for personnel attendance (registration, travel, lodging, meals, wages).
KW Prep + Continuing Education CE Fee 199.0 FIXED Optional program. Can increase to $1,000/month. Due on 10th day of month. For states without Keller Successful Career Opportunities. Franchisee receives 20% of revenue from CE courses. Subject to CPI adjustment.
KSCORE 599.0 FIXED Optional program. Can increase to $2,000/month. Due on 10th day of month. Third-party educational partnership for licensing and CE. Franchisee receives 20% of revenue from CE courses. Subject to CPI adjustment.
Force Majeure N/A VARIABLE Due during period Market Center not fully operational. May be minimum fee or waived depending on circumstances of Force Majeure event.
New Developments in Technology and New Offerings Fee N/A FIXED Currently $0 but can increase to $1,000/year. Due on demand. Franchisor reserves right to add fees for new technology and offerings. Subject to CPI adjustment.
Liquidated Damages for Failure to Comply with Post-Termination Obligations 500.0 FIXED Due on demand. Payable for failure to perform post-termination obligations and holdover operations.
Lost Profits N/A VARIABLE Due 30 days from demand. Payable for premature termination other than by mutual consent.

What You Get

Category

Real Estate

System Size

773 units

Franchise Score

64

out of 100

Keller Williams Realty is a residential real estate franchise that provides agents with training, technology, and support systems to help them sell properties and build their businesses. The company operates on a agent-centric model that emphasizes education and profit-sharing with its franchisees.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.9%

Low risk — below industry average

Net Unit Growth

-32 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 794 +13 784
2023 784 +9 -8 766
2024 766 +9 -4 762

Is a Keller Williams Realty Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Keller Williams Realty franchise opportunity:

Overall Score

64/100

Moderate opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

Low

0.9% annual closure rate

Keller Williams Realty shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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