Coldwell BankerFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Coldwell Banker franchise requires a total initial investment of $34K – $522K, including a $25K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 16.3% charge-off rate across 78 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $34K – $522K
- 15th pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- 5.5%
- 19th pct Real Estate
- Units
- 1,900
- 74th pct Real Estate
- SBA default
- 16.3%
- system-wide median varies by category
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1982. Systems this mature have refined operations and brand recognition.
17 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $34K – $522K including a $25K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 16.3% across 78 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 17 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Coldwell Banker Real Estate LLC
- Parent company
- Compass, Inc.
- CEO title
- President and Chief Executive Officer, Compass International Holdings
- Elisabeth Gehringer
- Incorporated in
- CA
- HQ
- 175 Park Avenue, Madison, NJ 07940
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $5.7B
- vs $6.0B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Coldwell Banker franchisees operate full-service residential real estate brokerage offices, managing agents who list and sell properties, generating revenue through commission splits on closed transactions. Franchisees handle office operations, agent recruitment/training, lead generation, marketing, and client relationship management in their local markets with no territorial exclusivity.
- CEO
- Elisabeth Gehringer
- Headquarters
- NJ
- Founded
- 1981
- FDD year
- 2026
- States available
- 50
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $15K | $100K |
| Equipment, build-out, other | $0 | $397K |
| Total initial investment | $34K | $522K |
Source: Coldwell Banker 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $34K – $522K
- Better than avg vs category
- Liquid capital req'd
- $15K – $100K
- Near category avg vs category
- Franchise fee
- $25K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Revenue · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $3K |
| Transfer fee | $5K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Real Estate averages
How Coldwell Banker Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,900
- Opened
- 53
- Last reporting year
- Closed
- 86
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 9
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.5%
- Company-owned
- 484
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Multi-unit owners
- 15.4%
- Net growth (yr3)
- -0.9%
- Net unit change last year
- 3-yr CAGR
- -4.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 25
- Transfer rate
- 1.4%
- Owners selling to other franchisees
- Continuity rate
- 95.7%
- Units that stayed open
- Termination rate
- 0.6%
- Franchisor-initiated terminations
- Ceased ops
- 2.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 50 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 78
- Loan volume
- $34.9M
- Median loan
- $442K
- 50th percentile
- Charge-off rate
- 16.3%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 32
- Defaults
- 8
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Coldwell Banker's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 3-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mature, declining real estate franchise with significant litigation exposure, no profitability transparency, and unprotected territories—moderate-to-high risk for capital deployment.
Litigation (Item 3)
Coldwell Banker Real Estate LLC v. The Bellmarc Group LLC et al. (Civil Action Number 2:14-cv-07926, USDC District of New Jersey). Franchisor filed suit December 19, 2014 against former franchisee entities and guarantor for trademark infringement and collection of amounts due. Court awarded franchisor $7,593,262.80 in damages plus $808,972.90 in attorneys' fees and $26,579.34 in costs following bench trial May 19-20, 2021. Bench trial and multiple motions resulted in dismissal of all counterclaims against franchisor.
Largest disclosed settlement: $7,593,263
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 rating
- 01MINORDeclining unit count (-0.9% YoY) suggests market saturation or franchisee dissatisfaction in a mature 1,900-unit system
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents assessment of actual franchisee profitability and ROI
- 03HIGHMultiple active litigation categories including antitrust commission structure claims and TCPA class actions indicate systemic operational/legal risks
- 04MINORUnprotected territory creates direct competition risk between franchisees and potential margin compression
- 05MEDHigh investment ceiling ($521,775) combined with undisclosed returns creates asymmetric risk/reward profile
- 06MINORDeclining royalty structure incentivizes growth but may signal prior franchisee profitability concerns at standard 5.5% rate
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 120 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 17 |
View Item 3 litigation summary
Coldwell Banker Real Estate LLC v. The Bellmarc Group LLC et al. (Civil Action Number 2:14-cv-07926, USDC District of New Jersey). Franchisor filed suit December 19, 2014 against former franchisee entities and guarantor for trademark infringement and collection of amounts due. Court awarded franchisor $7,593,262.80 in damages plus $808,972.90 in attorneys' fees and $26,579.34 in costs following bench trial May 19-20, 2021. Bench trial and multiple motions resulted in dismissal of all counterclaims against franchisor.
Items 10, 11
Training & Operations
- Classroom training
- 17 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 3 mo
- From signing to launch
- POS system
- Productivity Suite
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Productivity Suite
Item 20 · call current owners
Franchisee Contacts
1,262 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Coldwell Banker · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Coldwell Banker franchise?
The total investment to open a Coldwell Banker franchise ranges from $34K – $522K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Coldwell Banker franchise owners earn?
Coldwell Banker does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Coldwell Banker's franchise failure rate?
Based on SBA 7(a) loan data, Coldwell Banker has a charge-off rate of 16.3% across 78 loans, meaning 16.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Coldwell Banker franchise locations are there?
As of their most recent FDD filing, Coldwell Banker has 1,900 total units in the United States, including 1,297 franchised units and 484 company-owned units. 53 new units were opened in the latest reporting year.
Is Coldwell Banker a good franchise to buy?
FranchiseVerdict rates Coldwell Banker as a B-grade franchise with a risk score of 55 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.