Realty Executives Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$52,700 - $430,500
Franchise Fee
$18,000
Min Cash Required
$10,000
Total US Locations
258
Business Summary
Realty Executives Intl. Svcs. LLC grants franchises for operating real estate brokerage offices under the Realty Executives brand. These offices offer various real estate services to the general public, including leasing, listing, purchasing, referrals, selling, and trading. The business uses a proprietary system, featuring an 'original 100% Commission Concept' for its agents, distinctive logos, promotional materials, and an Intranet portal. Franchisees are trained on using this system to operate their real estate office.
Corporate History
Realty Executives Intl. Svcs. LLC was established as an Arizona limited liability company on April 1, 2014. It began offering Realty Executives franchises in May 2015. The company acquired the assets and franchise agreements of its predecessor, Realty Executives International, Inc., on April 14, 2014. The predecessor company had been offering Realty Executives franchises since March 1987.
Financial Overview
Investment Range
$52,700 - $430,500
Franchise Fee (Low)
$18,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$10,000
Royalty %
6%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$230,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Realty Executives Intl. Svcs. LLC's financial health is impacted by its primary revenue source, which comes from real estate franchise royalties and fees. This revenue stream is tied to real estate sales and can be affected by general economic conditions and mortgage interest rates. A notable aspect of its financial position is that Realty Executives Intl. Svcs. LLC has guaranteed a long-term secured note payable for its parent company, New REI Holdings, LLC. As of December 31, 2024, the outstanding amount on this guaranteed note was $5,160,000, maturing in December 2028.
Financing Details
Realty Executives Intl. Svcs. LLC may offer to finance the initial franchise fee, potentially covering up to 100% of the fee depending on the franchisee's creditworthiness. The franchisor does not guarantee other financial obligations of the franchisee. If financing is provided, franchisees must sign a promissory note. The financing terms include interest rates ranging from 8% to 20% APR and repayment periods from 1 to 10 years, typically through equal monthly installments of principal and compound interest. However, Realty Executives Intl. Svcs. LLC may offer flexible structures such as interest-only payments for a portion or the entire repayment period, potentially with a balloon payment at the end. Prepayment is allowed without penalty. For entity franchisees, all equity owners and their spouses must personally guarantee the financed amount.
Performance Metrics
Total US Locations
258
Franchised Units
258
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
8
Litigation Summary
Realty Executives Intl. Svcs. LLC has been involved in several legal disputes. In November 2024, a class-action lawsuit was filed against Realty Executives Intl. Svcs. LLC and other real estate companies by first-time homebuyers, alleging commission-fixing, antitrust violations, and consumer fraud. This lawsuit is currently stayed for Realty Executives Intl. Svcs. LLC. In August 2024, Realty Executives Intl. Svcs. LLC sued three former franchisees and their owner for non-payment of fees and breach of franchise agreements, resulting in a default judgment against the defendants. One owner filed for Chapter 13 bankruptcy in March 2025, which stayed enforcement against him. In March 2023, Realty Executives Intl. Svcs. LLC filed a lawsuit against a former Canadian franchisee for breaches including failure to meet salesperson quotas, improper use of marks, failure to maintain a registered broker, non-payment of fees, and brand damage. The court struck the franchisee's response in November 2024, and the parties are awaiting default judgment. In January 2023, Realty Executives Intl. Svcs. LLC sued a former franchisee and its owner for breaches of contract and personal guarantee, including failure to comply with records requests, meet salesperson quotas, maintain a designated broker, and for causing negative public perception. Default judgment was entered against both the franchisee and the owner in October and December 2023, respectively, for over $228,000 plus interest. In April 2022, Realty Executives Intl. Svcs. LLC filed a lawsuit against a former franchisee, its owners, and successor for non-payment of fees and alleged fraud. A settlement was reached in December 2022, with one owner paying $1,000 and another agreeing to pay $104,600 over 3.5 years. As of the FDD date, the latter payment obligation is not in compliance. Older cases from 2020, 2017, and 2016 were also described but resolved by settlement in 2022, 2022, and 2017 respectively. These included breaches of franchise agreements, non-competition clauses, and trademark infringement, all concluding with undisclosed or specified settlement payments and dismissals.
Bankruptcy History
Realty Executives Intl. Svcs. LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew their franchise agreement, Realty Executives Intl. Svcs. LLC franchisees and their owners must notify the franchisor in writing at least 90 days before the current term expires. They must be in good standing, without any defaults under their current agreement or any other agreements with the franchisor or its affiliates, both at the time of notice and when signing the new agreement. Franchisees are required to sign the franchisor's then-current franchise agreement and all related documents, including personal guarantees, at least 30 days before the current term ends. They must also sign a General Release and fulfill any other reasonable requirements from the franchisor. The terms of the new agreement may be significantly different from the original contract.
Training & Support Program
Franchisor Assistance
Realty Executives Intl. Svcs. LLC provides franchisees with various forms of assistance. Before opening, Realty Executives Intl. Svcs. LLC licenses necessary intellectual property, provides specifications for required goods and services, offers a list of approved suppliers, grants access to the operational Manual and designs for marketing materials, and conducts a mandatory initial training program. During operation, Realty Executives Intl. Svcs. LLC maintains a website listing all franchisees and provides each franchisee with their own Realty Executives broker website. It also administers a Marketing Fund for system-wide promotion. Realty Executives Intl. Svcs. LLC may also host periodic national or regional conferences (which Managing Principals must attend annually), offer annual training for owners and employees, provide ongoing guidance via phone or virtual meetings, negotiate purchase agreements with vendors for discounts, and give access to required and optional software, technology, and tools like PrimeAgent for business operations and reporting. Realty Executives Intl. Svcs. LLC also supports online marketing, including social media, and ensures compliance with brand standards.
Initial Training Hours
11.75
Training Location
Phoenix, Arizona or virtually
Ongoing Support
Realty Executives Intl. Svcs. LLC provides ongoing support by maintaining a website that lists all franchisees and gives each franchisee their own dedicated broker website. Realty Executives Intl. Svcs. LLC also manages a Marketing Fund for system-wide advertising and promotions. Additionally, Realty Executives Intl. Svcs. LLC may, though not obligated to, host annual national or regional events and conventions which require a Managing Principal to attend at least once a year. Realty Executives Intl. Svcs. LLC may also offer annual training programs, provide ongoing guidance through phone consultations or virtual meetings, assist in negotiating vendor purchase agreements for discounts, and offer access to various mandatory and optional software and technology systems like PrimeAgent for business operations and reporting. Realty Executives Intl. Svcs. LLC also supports online marketing, including social media, and ensures compliance with brand standards.
Franchise Requirements
Ideal Candidate Profile
Realty Executives Intl. Svcs. LLC seeks franchisees who will be actively involved in the day-to-day management and supervision of their business as a 'Managing Principal.' Candidates can come from either pre-existing real estate businesses or have no prior experience in operating a real estate business. If the Managing Principal is not a licensed real estate broker, the franchisee must ensure a licensed broker is always available to supervise real estate salespersons. The Managing Principal can delegate daily management to a third-party manager, but retains ultimate responsibility.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
Realty Executives Intl. Svcs. LLC territories are typically defined by a single address, zip codes, postal codes, or other boundaries. Most territories have a minimum population of 40,000 residents, though smaller towns may have smaller populations. The monthly Territory Fee increases by $200 for every 40,000 residents. The population for the fee calculation is based on the United States Census results at the time the Franchise Agreement is signed. The franchisor may adjust territory boundaries at renewal if the population significantly increases, to maintain a similar population size to the original territory.
Staffing Notes
Realty Executives Intl. Svcs. LLC requires franchisees to have at least one licensed Broker authorized to act on behalf of their business and supervise real estate Salespersons. This Broker must provide adequate supervision as required by law, including regular oversight, management, and instruction. If a franchisee operates multiple offices, a manager must be designated for each office if legally required. Any individuals hired by the franchisee are considered their employees, not employees of Realty Executives Intl. Svcs. LLC, and the franchisor does not control their activities. Realty Executives Intl. Svcs. LLC also imposes a Salesperson quota, which is a minimum number of Salespersons required to be associated with the franchisee's business.