Realty World® Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Realty World is a residential real-estate brokerage franchise. Franchisees run offices recruiting and supporting agents, managing transactions, and earning from commissions.
FranchiseVerdict summary · 2026
A Realty World® franchise requires a total initial investment of $60K – $195K, including a $3K – $18K franchise fee and an ongoing 4.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $60K – $195K
- 40th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 8th pct Real Estate
- Units
- 124
- 55th pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $60K – $195K including a $18K franchise fee, 4.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict C (Average), verdict score 41/100 (higher is better).
- DECLINESystem contracting at -25.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Realty World Inc.
- Predecessor
- AC Capital, Inc. (renamed Realty World America, Inc. in 1997, then Realty World Inc. in 2006)
- Prior franchisor entity
- CEO title
- President, Chief Executive Officer and Chairman of the Board
- Andrew Cimerman
- Incorporated in
- Nevada
- 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
- CEO
- Andrew Cimerman
- Headquarters
- CA
- Founded
- 1997
- FDD year
- 2025
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 40% below the typical real estate franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $18K | $18K |
| Working capital (3–6 mo) | $13K | $60K |
| Equipment, build-out, other | $29K | $117K |
| Total initial investment | $60K | $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
- $60K – $195K
- Top 40% of category vs category
- Liquid capital req'd
- $13K – $60K
- Middle of category vs category
- Franchise fee
- $3K – $18K
- Top 40% of category 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Realty World® did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Realty World® unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
82%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 45.0% — above the Real Estate average of 9.1%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -25.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Real Estate averages
How Realty World® Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 124
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 19
- Term expired, not renewed (per Item 20)
- Turnover rate
- 15.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -25.3%
- Net unit change over 3 years
- 3-yr CAGR
- -25.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 19
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 13 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
13
states with franchisees (per FDD Item 12)
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
- N/A
- no resolved loans yet — rate needs a terminal outcome
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 4
- Typical loan rate
- 5.9%
- avg rate to borrowers
- Franchised industry avg
- 14.8%
- n=527 loans
- Jobs supported
- 94
- 2.8 per loan
- Lender concentration
- 30%
- top lender's share
Franchise vs independent — in offices of real estate agents and brokers, franchised businesses charge off at 14.8% vs 29.6% for independents — franchising is associated with 50% lower SBA default risk in this category.
Top lenders financing Realty World® franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Audited financials (Item 21)
Yes · VanDerPol and Company
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 41 / 100 verdict
- 01MINORNet loss -$69,091; thin equity $437,533
- 02MINORNo Item 19 disclosure
- 03HIGHOnly 1 old settled litigation (2018)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 45.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 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 $60K – $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 Item 19 in the Realty World® FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Realty World® FDD and qualifies whose outlets they describe.
What is Realty World®'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Realty World® (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 124 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 C-grade franchise with a verdict score of 41 out of 100 (higher is better), 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.
For franchisors
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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.