Realty World® Franchise Cost, Revenue & Review 2026
- Investment
- $60K – $195K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 10 loans
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $60K – $195K
- 42nd pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 10th 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 median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- GROWTHNegative: net -18 franchised outlets in the latest year (1 opened, 19 closed) (Item 20).
- 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
- $784K
- vs $968K 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 is about typical for a real estate franchise (near the category median).
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
- Middle 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%
- 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® makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Realty World® unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Realty World® Compares
Category median of published Real Estate brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 19
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 19
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 12
- Franchisor's next-year forecast
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
- Limited · 10 loans
- Limited SBA coverage: 10 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 10 loans
- 5-yr charge-off
- Limited · 10 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Realty World® from SBA 7(a) FOIA data.
- Principal loss rate
- 33.2%
- Avg SBA guarantee
- 78%
- Avg interest rate
- 5.88%
- Avg chargeoff amount
- $276K
- Lender concentration
- 30.0%
- Job velocity
- 2.8 per $100K
- NAICS benchmark
- 8.5%
- NAICS 531210
- Jobs supported
- 94
Top SBA lendersTop lender holds 30% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Bank of the Sierra | 3 | $520K | 100.0% |
| 2 | Zions Bank, A Division of | 2 | $508K | 0.0% |
| 3 | Wells Fargo Bank National Association | 1 | $100K | 0.0% |
| 4 | Genesis Bank | 1 | $1.5M | 100.0% |
| 5 | Business Loan Center, LLC | 1 | $25K | 0.0% |
| 6 | The Huntington National Bank | 1 | $170K | 0.0% |
| 7 | Enterprise Bank & Trust | 1 | $513K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 7 | 4 | 66.7% |
| ALAlabama | 1 | 0 | 0.0% |
| IDIdaho | 1 | 0 | 0.0% |
| INIndiana | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Realty World Inc. v. NextHome, Inc. (N.D. Cal., filed Oct. 6, 2016) — breach of master license agreement, trademark infringement, and related claims arising from a former master licensee's transition to a competing brand. Settled via Settlement Agreement effective Feb. 1, 2018; case dismissed with prejudice Feb. 9, 2018.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · VanDerPol and Company
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited single-entity statements of Realty World, Inc. (the franchisor), auditor VanDerPol and Company, FYE May 31, 2025, in whole US dollars. FY2025 Total Revenue $784,013 = Franchise/broker network/advertising fees $655,242 + Other income $128,771. FY2024 Total Revenue $968,266. Net loss of $(69,091) for FY2025. Note: the balance sheet's 'Total Liabilities and Stockholder's Equity' line is printed as $557,642 while the 'Total Assets' line is printed as $554,821 (an ~$2,821 in-source discrepancy); Total Liabilities $120,109 + Stockholder's Equity $437,533 = $557,642. Reported Total Assets is the printed $554,821.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 40 / 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 | 5 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Within 50 miles of franchisor's then-current principal place of business (currently Newport Beach, California) |
| Jury trial waiver | Yes |
| Governing law | State in which Business is located |
| Litigation count | 1 |
View Item 3 litigation summary
Realty World Inc. v. NextHome, Inc. (N.D. Cal., filed Oct. 6, 2016) — breach of master license agreement, trademark infringement, and related claims arising from a former master licensee's transition to a competing brand. Settled via Settlement Agreement effective Feb. 1, 2018; case dismissed with prejudice Feb. 9, 2018.
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 0 hrs
- Ongoing training
- Required
- Site selection
- Franchisor approves site selected by franchisee
- Franchisor financing
- Offered
- Item 10
- 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
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® makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Realty World®?
Realty World® is franchised by Realty World Inc.. Source: FDD Item 1, 2025 filing.
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 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.