Do you want to open a real estate business by buying Keller Williams franchise? If YES, here is how much it cost to open Keller Williams franchise successfully. If you are looking towards opening a Keller Williams Franchise, it will be nice for you to know what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Keller Williams was founded in 1983 and they began franchising in 1987, about 33 years ago. Garry Keller is the CEO and they have their corporate head office at 1221 S. MoPac Expwy., #400 Austin, TX 78746. The company grew from a single office in Austin to approximately 940+ offices with over 180,000 associates worldwide as of May 2018.
It has been recognized as one of the highest rated real estate companies by numerous publications, including Entrepreneur and Forbes. In 2018, it was listed as one of the “happiest companies to work for” by Career Bliss.
Keller Williams Realty (commonly referred to as Keller Williams) is an American technology and international real estate franchise with headquarters in Austin, Texas. It is the number one franchise in the United States by sales volume, ranking number one in agents and units sold in 2017.
It is also the largest real estate franchise by agent count in the world, and one of the largest privately held global residential real estate brokerages. As two young real estate agents working for what was then the largest real estate company in Austin, Texas, Gary Keller and Joe Williams believed that a company should work for its employees rather than the other way around.
So the two men joined forces to found Keller Williams Realty in 1983. Four years later the partners began franchising. With offices throughout the country, Keller Williams encourages agents to recruit others into the company through profit-sharing.
Financial Investment Required to Open a Keller Williams Franchise?
Keller Williams has a franchise fee of up to $35,000, with total initial investment range of $183,947 to $336,995. Here are areas where you are expected to spend money and the cost associated with it;
1. Initial Franchise Fee: $35,000
The current initial franchise fee is $35,000. The initial franchise fee for Keller Williams locations that are developed under a Development Agreement after the first location is one-half of the current initial franchise fee.
2. Total Estimated Initial Investment Under the Franchise Program: $183,947 – $336,995
The franchisor relied on its experience from opening a Keller Williams location in the past and its experience in the real estate business to compile these estimates.
3. Royalties: 6 percent
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/ or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
4. POS Hardware and Software
Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
5. Attorneys’ Fees and Costs
Will vary under circumstances. (Due Date: As incurred.). Payable to Keller Williams if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Keller Williams is required to defend your unsuccessful claim against it. Please note that this includes legal fees incurred at the trial level and appellate levels.
6. Equipment, Supply, or Supplier Testing or Inspecting
Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.). Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- Taxes: Amount required to reimburse Keller Williams for certain taxes imposed on payments to it and the Due Date for this fee On demand.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Costs and Attorneys’ Fees: Will vary under circumstances.
- Indemnity: Will vary under circumstances.
- Insurance: Reimbursement of Costs: The franchisor’s out-of-pocket costs.
- Advertising Fee: If Keller Williams imposes this fee, you will pay up to 1 percent of your Gross Sales
Due Date: If Keller Williams imposes this fee, it will be due on or before Wednesday of each week for the previous week.
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two additional 10 – year renewal terms are available, if requirements are met.
- Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees or guarantees any note, lease or obligation of theirs.
Please note Keller Williams has relationships with third-party sources which offer financing to cover the following; franchise fee, startup costs, equipment, inventory, and accounts receivable.
- Initial investments: $183,947 – $336,995
- Liquid Cash Requirement: $150,000
- Initial Franchise Fee (Ongoing): $35,000
- Ongoing Royalty Fee: 6 percent
- Ad Royalty Fee 1K per year.
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