Century 21 Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$34,670 - $466,300
Min Cash Required
$75,000
Total US Locations
1,734
Business Summary
Century 21 Real Estate LLC offers franchises for real estate sales offices that provide residential and commercial real estate brokerage services, along with limited property management services. Franchisees operate these offices under the CENTURY 21® brand name and its proprietary system. The franchise opportunity is available to owners of existing real estate brokerage businesses who wish to convert their operations, and in some situations, to individuals looking to establish new real estate brokerages.
Corporate History
CENTURY 21 Real Estate LLC was originally incorporated as a corporation in September 1979 and later converted to a limited liability company in December 2004. The brand began granting subfranchises in February 1972, which allowed subfranchisors to offer CENTURY 21® franchises. In December 1995, CENTURY 21 Real Estate LLC merged with its owned U.S. subfranchisors and began directly selling CENTURY 21® franchises in 1996.
Financial Overview
Investment Range
$34,670 - $466,300
Franchise Fee (High)
$25,000
Minimum Cash Required
$75,000
Minimum Net Worth
$150,000
Royalty %
6%
Marketing %
0.5%
Equipment Costs (Low)
$38,900
Equipment Costs (High)
$234,900
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Anywhere Real Estate Inc. and Anywhere Real Estate Group LLC have experienced net losses in 2024, 2023, and 2022. The company faces significant litigation risks, particularly from industry-wide antitrust and class action lawsuits, which are inherently unpredictable and could lead to liabilities materially exceeding current accruals, potentially adversely affecting financial condition, results of operations, or cash flows. CENTURY 21 Real Estate LLC also has a $40 million accrual as of December 31, 2024, related to a Cendant legacy tax matter that is anticipated to be payable as early as the first quarter of 2025. Despite these factors, the independent auditors have provided an unqualified opinion on the consolidated financial statements, without raising a going concern qualification.
Financing Details
CENTURY 21 Real Estate LLC and its Related Parties are not obligated to provide financing but may offer it to assist with conversion costs or growth opportunities. This financing is typically in the form of promissory notes. Two primary types of financing are offered: 1. Conversion Promissory Notes (CPN): These notes help with initial conversion or opening costs like signage, advertising, acquisition, and recruiting. They require no down payment and have a term of 9-10 years. The annual principal can be forgiven if the franchisee meets specific annual Gross Revenue thresholds and remains compliant with the franchise agreement. If thresholds are not met, the annual principal becomes immediately due. Interest (18% per annum or the highest legal rate) is only charged upon a payment default. 2. Expansion Promissory Notes: These are offered to existing franchisees for acquisitions or other business-related expenses. They also require no down payment, but the term varies, and the principal must be fully repaid six months before the franchise agreement expires, with no forgiveness opportunity. Similar to CPNs, interest (18% per annum or the highest legal rate) is charged upon payment default. Both types of notes require a personal guaranty from all equity interest holders and their spouses, a security agreement, a UCC-1 filing, and a pledge of future Century 21 Incentive Bonuses. Default on any note can lead to acceleration of payments and potential termination of the franchise agreement.
Performance Metrics
Total US Locations
1,734
Franchised Units
1,734
Corporate Units
0
Avg Square Footage
2,650
Franchising Since
1972
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
14
Litigation Summary
CENTURY 21 Real Estate LLC has been involved in various legal proceedings, including several ongoing cases. One pending case, filed in July 2023, is against a franchisee and its owner regarding a royalty rate dispute and breach of confidentiality. CENTURY 21 Real Estate LLC is defending against counterclaims, arguing a mutual mistake in the agreement. Resolved litigation against CENTURY 21 Real Estate LLC includes a fraud and civil conspiracy case from 2014, which settled for $10,000 to CENTURY 21 Real Estate LLC in 2016. Another case from 2015 against a former franchisee for breach of contract and trademark infringement settled for $50,000 in 2016. Two class actions regarding unsolicited autodialed calls by affiliated agents were also resolved: one in 2020 with a $200,000 settlement (combined with a related case) and another in 2021 that was dismissed. Several ongoing antitrust class action lawsuits, initiated between 2019 and 2024, are also pending against Anywhere Real Estate Inc. and its affiliates, including CENTURY 21 Real Estate LLC. These cases challenge industry rules on buyer-broker commissions. Anywhere Real Estate Inc. entered a nationwide settlement for $83.5 million for some of these cases in October 2023, which received final court approval in May 2024 but is currently under appeal. Other similar 'copycat' lawsuits are largely stayed pending these appeals. A class action from 2019 concerning Telephone Consumer Protection Act violations by affiliated agents settled for $20 million in January 2025, pending court approval. Additionally, a lawsuit filed in August 2024 alleges a conspiracy to exclude new market entrants from real estate brokerage services, and a Washington State Attorney General investigation concerning real estate practices began in February 2024. Historically, a regulatory investigation by HUD and FTC from 2006 to 2009 regarding a joint venture was resolved in 2008 without fines or penalties. CENTURY 21 Real Estate LLC has not initiated any legal actions that require disclosure.
Bankruptcy History
CENTURY 21 Real Estate LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Conditions
CENTURY 21 Real Estate LLC does not offer renewal rights. If an additional term is granted, franchisees may be required to sign a new franchise agreement or a Term Extension Addendum with potentially different terms.
Training & Support Program
Franchisor Assistance
CENTURY 21 Real Estate LLC provides franchisees with a range of support services. While CENTURY 21 Real Estate LLC does not select office locations, it must approve sites based on minimum standards before an office opens. Franchisees receive access to an online Policies and Procedures Manual (P&P Manual) detailing mandatory standards and operating procedures, with 90 days to comply with updates. Initial training includes a mandatory International Leadership Academy (ILA) Program, which can be attended by the owner or an approved designee within 24 months of opening. The first ILA registration is complimentary for new first-time franchisees, though travel and lodging costs are the franchisee's responsibility. The program is multi-session, combining virtual and in-person components, covering topics like recruiting, agent productivity, and marketing. No on-the-job training is provided, but optional education programs are available for a fee. CENTURY 21 Real Estate LLC offers an annual cash bonus program (CIB) to qualifying franchisees based on Gross Revenue. The company also manages a Brand Marketing Fund (BMF), contributed to by franchisees, for national and regional advertising and public relations campaigns. This fund covers development, production, and placement costs, including marketing staff compensation and corporate services. Franchisees are also responsible for local marketing expenses and can create their own compliant materials. Technology support includes an internet-based reporting system for transactions provided at no charge, requiring franchisees to have compatible hardware and connectivity. Optional technology tools like the Productivity Suite (CRM, presentation, websites, recruiting, email marketing) and Leads Engine are available, some without current fees, though future charges may be introduced. Franchisees are responsible for any Multiple Listing Service (MLS) integration fees. CENTURY 21 Real Estate LLC may require franchisees to update computer equipment at their own cost. Additionally, ancillary services such as loan brokerage, escrow, title searches, and insurance may be offered directly or through affiliates for a fee.
Initial Training Hours
34
Training Location
Hybrid (in-person at corporate headquarters or other US location, and virtually via Zoom)
Ongoing Support
CENTURY 21 Real Estate LLC provides ongoing support to franchisees through various channels. This includes continuous guidance on marketing and system compliance, delivered via the Policies and Procedures Manual, bulletins, electronic communications, and phone or in-person consultations. Special assistance can also be requested for a fee. The company offers optional learning programs, courses, seminars, and conferences, with franchisees covering associated fees and expenses. An annual international business conference is held, which at least one franchisee representative must attend. While the first-year registration for a new first-time franchisee's first office is complimentary, subsequent attendance and all travel, lodging, and incidental expenses are the franchisee's responsibility. CENTURY 21 Real Estate LLC also offers an annual cash bonus program (CIB) to qualifying franchisees and manages a Brand Marketing Fund (BMF) for national and regional advertising and marketing efforts. Technology support encompasses an internet-based reporting system and optional tools like the Productivity Suite and Leads Engine, which may be subject to future fees. Furthermore, CENTURY 21 Real Estate LLC may offer ancillary real estate services such as loan brokerage, escrow, title searches, and insurance, either directly or through affiliated companies, for an additional fee.
Franchise Requirements
Ideal Candidate Profile
CENTURY 21 Real Estate LLC seeks franchisees who are owners of existing real estate brokerage businesses or, in some situations, individuals establishing new brokerages. Ideal candidates must meet CENTURY 21 Real Estate LLC's financial, professional, and operational standards, and operate in a desired market. Franchisees must have a minimum net worth of over $150,000 and liquid assets of at least $75,000. Owners are required to actively participate in the management of the franchise and must retain a licensed "Responsible Broker" who complies with all applicable laws and regulations.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
30
Territory Size Requirements
The CENTURY 21 Real Estate LLC territory is defined as a 1/4-mile radius, measured "as the crow flies" between exterior office walls, from the franchisee's office location. This protected area does not apply to Limited Purpose Offices. Outside this 1/4-mile radius, CENTURY 21 Real Estate LLC and its Related Parties retain the right to own, operate, franchise, or license other real estate brokerage businesses, including other CENTURY 21® offices or different brands, without compensation to the franchisee.
Staffing Notes
CENTURY 21 Real Estate LLC assumes its offices will accommodate up to 30 people, including employees and independent sales associates. Franchisees are required to retain a licensed "Responsible Broker," and this individual, along with any office managers, must comply with all applicable laws and regulations. Any new Responsible Broker must attend the International Leadership Academy (ILA) Program. CENTURY 21 Real Estate LLC does not dictate specific employee wages, commission structures, or working conditions, as these are the sole responsibility of the franchisee, except where necessary to protect the brand's trademarks and goodwill. Franchisees are also responsible for ensuring their technology has appropriate data security controls and adheres to privacy and information security laws.