Century 21 Franchise in 2024: Costs, Fee & FDD

Century 21 Real Estate LLC, established in 1971 by Art Bartlett and Marsh Fisher in Orange County, California, has become a cornerstone in the real estate industry. Their vision of creating a unified network of real estate professionals revolutionized the market, setting new standards for service and collaboration.

The franchise offers comprehensive real estate services, including residential and commercial property sales, leasing, and property management. By leveraging advanced technology and marketing strategies, Century 21 caters to a diverse clientele, from first-time homebuyers to seasoned investors, ensuring personalized and efficient service.

Today, Century 21 boasts a vast global presence with approximately 14,000 independently owned and operated franchised broker offices in 86 countries and territories, employing over 147,000 sales professionals. This extensive network facilitates a broad reach, connecting clients with properties worldwide.

Franchisees benefit from robust support systems, including comprehensive training programs, marketing resources, and ongoing operational assistance. The brand’s commitment to innovation and excellence ensures that franchise owners are well-equipped to succeed in the competitive real estate market.

Century 21 Franchise Insights

1. The franchise offers cutting-edge tools like AI-driven marketing, advanced CRM platforms, and lead generation systems to support agents and enhance client interactions.
2. With 1,807 franchised locations across the United States, Century 21 has an impressive domestic footprint, providing strong brand recognition and market reach.
3. With low startup costs compared to other industries and scalable operations, Century 21 franchises appeal to entrepreneurs at various investment levels.
4. Consistently ranked among the top real estate franchises globally, Century 21 has garnered numerous accolades for its innovation, customer satisfaction, and franchise support.

Century 21 Franchise Key indicators

How much does it cost to open a Century 21 franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Century 21 franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Century 21 franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Century 21 below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Century 21 franchise, the required capital involves both the initial investment costs and a net worth requirement set by Century 21. Let’s take a closer look below:

• Initial Investment As shown above, the total estimated initial investment ranges from $32,870 to $279,000. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets For a real estate brokerage franchise in this investment range, liquid assets of $50,000 to $100,000 are typically required to cover upfront costs and working capital.
• Net Worth Franchisors often expect a minimum net worth of $150,000 to $300,000, demonstrating financial stability and ensuring the franchisee can handle the ongoing operational costs.

How much does a Century 21 franchise owner make?

Calculating the salary of a Century 21 franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Century 21 franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Century 21 Revenue & Gross Sales

Century 21 does not publicly disclose median gross sales figures. However, the franchise’s extensive network of over 1,800 U.S. locations and strong global presence indicates steady performance and market recognition.

Which key factors impact the average revenue performance of Century 21 franchisees?

The performance of U.S. franchisee median gross sales for Century 21 is influenced by various internal and external factors. Internally, the franchise’s reputation for offering robust agent training programs, advanced marketing tools, and access to a vast global network likely enhances agent productivity and client acquisition. Externally, real estate market conditions, such as housing demand, interest rates, and economic fluctuations, play a significant role in driving or limiting sales growth. Additionally, the franchise’s emphasis on technology-driven solutions, such as CRM systems and lead generation tools, could have helped franchisees capitalize on opportunities despite market challenges. For more clarity, prospective franchisees should request insights from existing operators to better understand how these factors impact individual franchise locations.

Century 21 Franchise Operational Costs

If you were to open a Century 21 franchise, here are the key ongoing operational costs specific to running a real estate brokerage:

• Office Space Costs Rent, utilities, and maintenance for your brokerage office, which can vary significantly based on size and location.
• Staffing and Agent Support Salaries for administrative staff and potential incentives or commission splits for real estate agents.
• Technology and Software Subscription fees for customer relationship management (CRM) tools, listing platforms, and marketing systems provided by Century 21 or third-party vendors.
• Local Marketing and Advertising Costs for local promotions, events, and digital campaigns to attract clients and recruit agents.
• Professional Licensing and Continuing Education Licensing fees and training programs for brokers and agents to stay compliant and competitive.
• Insurance Business liability, errors and omissions (E&O), and property insurance to protect your operations.

These costs vary depending on your location and scale, making a detailed budget essential for successful operations.

Century 21 Franchise Fees

When considering a Century 21 franchise, it’s important to understand the ongoing fees associated with operating your business. These fees are integral to accessing franchisor resources, maintaining brand standards, and supporting operational success.

• Royalty Fee Franchisees pay 6% of gross revenue, with property management services assessed separately at a 1.5% fee on gross revenue from those services. These fees are payable upon the close of each transaction.
• Brand Marketing Fund (BMF) Fee A 0.5% fee on gross revenues is required for marketing initiatives. Payments are due within 20 days of being invoiced, with penalties for late payments.
• Property Management Fees For property management services, franchisees pay a 1.5% fee on gross revenues from these services, covering activities like leasing or managing real estate properties.
• Potential Additional Fees Other costs, such as technology fees, training expenses, or optional marketing initiatives, may apply depending on your franchise agreement and business operations.

Understanding these fees helps ensure effective financial planning and compliance with franchise obligations.

Century 21 Franchise Earnings

Century 21 does not publicly disclose specific median gross sales figures in its Franchise Disclosure Document (FDD), making it difficult to provide exact earnings estimates for franchisees. However, as a globally recognized brand with over 1,800 locations in the U.S., its large network and strong reputation can create opportunities for solid revenue potential in competitive markets.

Owner-operator earnings for real estate brokerage franchises typically depend on factors like transaction volume, agent productivity, commission splits, and operational efficiency. For brokerages, gross profit margins often range between 15% to 25% of gross revenue, depending on the market and business model. Additionally, Century 21’s support systems, including marketing tools and agent training, help franchisees maximize earnings potential.

How to Open a Century 21 Franchise

The process of becoming a Century 21 franchisee is structured to ensure that candidates are well-prepared to operate a successful real estate brokerage. Here are the steps:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Franchise Application and Evaluation Complete a formal application to provide details about your experience and suitability as a franchisee. The franchisor will evaluate your qualifications and ensure you meet financial requirements.
3. Discovery Day Attend a discovery day at the Century 21 headquarters to meet the leadership team, learn about the franchise model, and ask questions to determine if the opportunity aligns with your goals.
4. Franchise Agreement and Fee Payment Upon mutual approval, sign the franchise agreement and pay the initial franchise fee to officially join the Century 21 network.
5. Training and Preparation Complete comprehensive training programs, which include learning about Century 21’s systems, tools, and operational processes. These sessions ensure you are equipped to run your brokerage effectively.
6. Office Setup and Staffing Work with Century 21’s support team to select and lease an office location, design your space, and hire staff and agents to begin building your team.

Grand Opening and Operations: Launch your office with guidance from the franchisor, leveraging their marketing resources and operational support to ensure a successful start.

Pros & Cons

Pros

Global Brand Recognition: With over 1,800 U.S. locations and a presence in 86 countries, Century 21 offers unmatched brand equity and market reach.

Low Initial Franchise Fee: The franchise fee is $12,500, making it one of the more affordable options in the real estate sector.

Flexible Business Model: Franchisees maintain independence while leveraging the franchisor’s brand, allowing for customized growth strategies.

High Growth Potential: Real estate remains a lucrative industry, with high potential earnings in markets with strong housing demand.

Cons

No Item 19 in the FDD: The lack of financial performance disclosures makes it challenging to estimate profitability without conducting extensive independent research.

Competitive Market: The real estate industry is saturated with large brands like RE/MAX, Keller Williams, and Coldwell Banker, requiring strong local efforts to stand out.

Transaction-Driven Revenue: Earnings heavily depend on housing market conditions, agent performance, and local economic factors, which can be unpredictable.