Sotheby’s International Realty Franchise Cost, Revenue & Review 2026
- Investment
- $47K – $332K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (9)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sotheby's International Realty is a luxury residential real-estate brokerage franchise trading on the Sotheby's name to reach high-net-worth clients. Franchisees run high-end offices recruiting agents and marketing premium properties, earning from commissions.
FranchiseVerdict summary · 2026
A Sotheby’s International Realty franchise requires a total initial investment of $47K – $332K, including a $25K franchise fee and an ongoing 6.0% 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: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
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
- $47K – $332K
- 29th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 24th pct Real Estate
- Units
- 709
- 84th 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 $47K – $332K including a $25K franchise fee, 6.0% 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 B (Above average), verdict score 59/100 (higher is better).
- GROWTHPositive: net +6 franchised outlets in the latest year (27 opened, 21 closed) (Item 20).
- LEGAL13 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
Corporate structure & franchisor financials
- Legal entity
- Sotheby's International Realty Affiliates LLC
- Parent company
- Anywhere Real Estate Services Group LLC
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Compass, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- President and Chief Executive Officer
- Philip A. White, Jr.
- Incorporated in
- Delaware
- HQ
- 175 Park Avenue, Madison, New Jersey 07940
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $6.0B
- vs $5.7B prior year
Same owner · FDD Item 1, page 9
7 other brands on this site name Compass, Inc. as parent or ultimate parent in their own FDD.
- Better Homes and Gardens Real EstateD
- CENTURY 21®B
- Christie’s International Real EstateB
- Coldwell BankerB
- Coldwell Banker Commercial®B
- CorcoranB
- ERA Real EstateC
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Philip A. White, Jr.
- Headquarters
- NJ
- Founded
- 2004
- FDD year
- 2026
- States available
- 46
Can you afford it, and what does the money buy?
Entry cost runs 43% above the typical real estate franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $0 | $25K | |
| Real Estate | — | — | |
| Leasehold Improvements | $0 | $105K | |
| Building Signs | $750 | $25K | |
| Yard Signs and Frames/Posts | $7K | $12K | |
| Open House Signs | $900 | $3K | |
| Miscellaneous Rider Signs | $250 | $500 | |
| Name Badges | $500 | $750 | |
| Miscellaneous | $250 | $500 | |
| Printed Materials | $5K | $25K | |
| Insurance | $500 | $4K | |
| Legal Expenses | $0 | $4K | |
| Orientation - Travel Expenses and Costs | $400 | $3K | |
| Computer Equipment for Electronic Data Transfer System | $6K | $12K | |
| Website | $1K | $35K | |
| MLS/Data Feed Transmission | $0 | $8K | |
| Additional Launch Expenses (Grand Opening) | $5K | $20K | |
| Interior Branding | $5K | $10K | |
| Additional Funds (first 3 months after opening) | $15K | $40K | |
| Total initial investment | $47K | $332K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $47K – $332K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $40K
- Middle of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $3K |
| Transfer fee | $5K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Sotheby’s International Realty 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 Sotheby’s International Realty 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: 2026 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 8.0% (near the Real Estate median).
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 roughly stable (-0.3% 3-year CAGR) with 709 units.
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 Sotheby’s International Realty 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 709
- Opened
- 27
- Last reporting year
- Closed
- 21
- Turnover rate
- 3.0%
- Company-owned
- 37
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- -0.3%
- Net unit change over 3 years
- 3-yr CAGR
- -0.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Termination rate
- 0.1%
- Franchisor-initiated terminations
- Ceased ops
- 3.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 46 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.
Where the owners are · Item 20 owner list
593 current owners across 46 states; 17 former (terminated, transferred or not renewed) listed separately.
- FL 67
- CA 65
- NY 55
- MA 52
- NJ 44
- CO 22
- CT 21
- NC 20
- OR 18
- TX 18
- WA 18
- MD 13
- +34 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $5.9M
- Median loan
- $650K
- average
- Charge-off rate
- Under 10 loans (9)
- Insufficient SBA coverage: 9 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (9)
- 5-yr charge-off
- Under 10 loans (9)
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
Real estate franchisor with 13 litigation matters, largely industry-wide antitrust commission class actions against parent Anywhere (mostly resolved via $83.5M settlement). Parent net income is negative -$89M but net worth is a very strong $1.49B on $5.96B revenue. Litigation is industry-standard for the sector; no Item 19.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Primarily antitrust commission-structure class actions (Moehrl, Burnett, Nosalek, Batton, Chinitz TCPA, Homie) against parent Anywhere and other major franchisors, largely resolved/settling via nationwide $83.5M Anywhere Settlement (Moehrl/Burnett) and $9.6M Tuccori opt-in settlement; one resolved franchisee dispute (Brazen, $175,000 settlement); shareholder merger-related suits (one settled for $450,000); historical RESPA and HUD/FTC regulatory matters, resolved.
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
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 59 / 100 verdict
- 01HIGHlitigation_count=13, industry-wide antitrust class actions (mostly settled)
- 02MINORfranchisor_net_income=-$89,000,000
- 03MINORnet worth $1.49B, audited
- 04MINORno Item 19 disclosure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| RoFR response window | 120 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | New Jersey |
| Litigation count | 13 |
View Item 3 litigation summary
Primarily antitrust commission-structure class actions (Moehrl, Burnett, Nosalek, Batton, Chinitz TCPA, Homie) against parent Anywhere and other major franchisors, largely resolved/settling via nationwide $83.5M Anywhere Settlement (Moehrl/Burnett) and $9.6M Tuccori opt-in settlement; one resolved franchisee dispute (Brazen, $175,000 settlement); shareholder merger-related suits (one settled for $450,000); historical RESPA and HUD/FTC regulatory matters, resolved.
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Optional
- Franchisor financing
- Offered
- Item 10
- POS system
- dash
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: dash
Item 20 · call current owners
Franchisee Contacts
610 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 Sotheby’s International Realty franchise?
The total investment to open a Sotheby’s International Realty franchise ranges from $47K – $332K, 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 Sotheby’s International Realty franchise owners earn?
Sotheby’s International Realty 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 Sotheby’s International Realty?
Sotheby’s International Realty is franchised by Sotheby's International Realty Affiliates LLC. Its parent company is Anywhere Real Estate Services Group LLC. The ultimate parent named in the FDD is Compass, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Sotheby’s International Realty 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 Sotheby’s International Realty FDD and qualifies whose outlets they describe.
What is Sotheby’s International Realty's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sotheby’s International Realty (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 Sotheby’s International Realty franchise locations are there?
As of their most recent FDD filing, Sotheby’s International Realty has 709 total units in the United States, including 672 franchised units and 37 company-owned units. 27 new units were opened in the latest reporting year.
Is Sotheby’s International Realty a good franchise to buy?
FranchiseVerdict rates Sotheby’s International Realty as a B-grade franchise with a verdict score of 59 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.
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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.