Realty World®Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Realty World® franchise requires a total initial investment of $19K – $195K, including a $18K franchise fee and an ongoing 4.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 44.4% charge-off rate across 10 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $19K – $195K
- 5th pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- 4.0%
- 8th pct Real Estate
- Units
- 124
- 47th pct Real Estate
- SBA default
- 44.4%
- 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
44.4% of SBA loans charged off across 10 loans, above the 16% franchise average.
Franchising since 2000. Systems this mature have refined operations and brand recognition.
Franchised units fell from 166 to 124 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $19K – $195K including a $18K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 44.4% across 10 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -16.2% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- REALTY WORLD INC.
- Incorporated in
- NV
- HQ
- 1101 Dove Street, Suite 228, Newport Beach, California 92660
- Auditor
- VanDerPol and Company
- Audited financials
- Franchisor revenue
- $968K
- vs $784K prior year
Overview
About
Franchisees operate real estate brokerage offices under the Realty World brand, recruiting and managing sales representatives who list and sell residential properties. Revenue is generated through commissions on property transactions, with franchisees paying royalties based either on 4% of gross revenue or a per-rep fee structure ($74/sales representative). Day-to-day operations include agent recruitment, training, compliance, marketing, and lead generation.
- CEO
- Andrew Cimerman
- Headquarters
- CA
- Founded
- 1997
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $18K | $18K |
| Working capital (3–6 mo) | $10K | $60K |
| Equipment, build-out, other | $0 | $117K |
| Total initial investment | $19K | $195K |
Source: Realty World® 2025 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
- $19K – $195K
- Better than avg vs category
- Liquid capital req'd
- $10K – $60K
- Better than avg vs category
- Franchise fee
- $3K – $18K
- Better than avg vs category
- Royalty
- 4.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 45.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $39 |
| Transfer fee | $4K |
| Renewal fee | $2K |
| Total fee load | 45.0% 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 Realty World® Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 124
- Opened
- 1
- Last reporting year
- Closed
- 19
- Turnover rate
- 15.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -12.7%
- Net unit change last year
- 3-yr CAGR
- -16.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $3.3M
- Median loan
- $165K
- 50th percentile
- Charge-off rate
- 44.4%
- 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)
- 55.6%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 4
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Realty World®'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 5-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 44.4% charge-off rate means roughly 1 in 2 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Realty World presents HIGH RISK due to declining unit growth, absent financial disclosure, trademark litigation history, unprotected territories, and opaque unit economics that prevent proper due diligence.
Audited financials (Item 21)
Yes · VanDerPol and Company
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 100 rating
- 01MINORUnit count declining 12.7% YoY (124 units) indicates contracting franchise system with potential sustainability issues
- 02MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents realistic ROI assessment and suggests weak performance data
- 03HIGHHigh-profile litigation (2016 breach of master license agreement and trademark infringement) signals operational/legal complexity despite 2018 settlement
- 04MINORUnprotected territory creates direct competition risk between franchisees within same market
- 05MINORWide investment range ($18.6K–$195K) with unclear cost drivers and no transparent average unit economics
- 06MINORRoyalty structure ($74/rep minimum) may incentivize under-reporting of sales representatives or create accounting disputes
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 | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | State in which Business is located |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 0 hrs
- POS system
- TechPack
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TechPack
Item 20 · call current owners
Franchisee Contacts
138 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Realty World® · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Realty World® franchise?
The total investment to open a Realty World® franchise ranges from $19K – $195K, with an initial franchise fee of $18K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Realty World® franchise owners earn?
Realty World® 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 Realty World®'s franchise failure rate?
Based on SBA 7(a) loan data, Realty World® has a charge-off rate of 44.4% across 10 loans, meaning 44.4% 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 Realty World® franchise locations are there?
As of their most recent FDD filing, Realty World® has 124 total units in the United States, including 166 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Realty World® a good franchise to buy?
FranchiseVerdict rates Realty World® as a F-grade franchise with a risk score of 100 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.