Risk Score
Pending analysis
Investment Range
$14,800 - $181,500
Franchise Fee
$5,000
Min Cash Required
$3,000
Total US Locations
57
Business Summary
Sperry operates a commercial real estate brokerage franchise, offering full-service commercial real estate sales and leasing programs, along with related services. These services are provided to buyers and owners of commercial real property, following Sperry's specific methods and using designated technology. Franchisees must employ at least one real estate broker at their office. Additionally, franchisees may offer business brokerage and property management services if they meet the necessary licensing and insurance requirements.
Corporate History
Sperry Commercial Global Affiliates, LLC was originally founded as a corporation in Delaware in December 2014, then converted to a limited liability company in April 2016. The company operates solely as a franchisor of Sperry franchises, having started offering franchises in September 2016. Although Sperry Commercial Global Affiliates does not operate franchised businesses itself, its affiliated entity, Sperry Commercial, Inc. (SCI), and other related entities own and operate three Sperry offices in California, Colorado, and Georgia.
Financial Overview
Investment Range
$14,800 - $181,500
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$10,000
Minimum Cash Required
$3,000
Royalty %
2%
Equipment Costs (Low)
$3,500
Equipment Costs (High)
$133,000
Working Capital
$6,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Sperry Commercial Global Affiliates, LLC has incurred substantial net losses for the past six years, including a net loss of $275,635 in 2024. The financial statements are prepared assuming the company will continue as a going concern, but this assumption is supported by management's optimism about growth potential, a commitment from the member for continued financial support, and backing from the Sperry group of affiliated companies who have pledged indefinite monetary support.
Financing Details
Sperry Commercial Global Affiliates, LLC does not offer any direct or indirect financing to its franchisees. It also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
57
Franchised Units
54
Corporate Units
3
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sperry Commercial Global Affiliates, LLC has no litigation to report in this Item.
Bankruptcy History
Sperry Commercial Global Affiliates, LLC has no bankruptcy history to report in this Item.
Agreement Terms
Renewal Conditions
To renew, Sperry Commercial Global Affiliates, LLC franchisees must provide written notice at least 120 days before their current term expires. They must be solvent, not have abandoned the franchise, and not be operating in a way that endangers public health or safety or harms the Sperry brand or reputation. Franchisees must also not have knowingly submitted false reports. As part of renewal, they must sign Sperry's then-current Renewal Franchise Agreement (or an addendum to extend their existing agreement), make any necessary physical modifications to their office to meet current system requirements, and pay a renewal fee of $1,000. The Renewal Franchise Agreement may include different terms and conditions, but the boundaries of the Primary Area of Responsibility and recurring fees will remain unchanged.
Training & Support Program
Franchisor Assistance
Sperry Commercial Global Affiliates, LLC provides a range of assistance to its franchisees. Before opening, Sperry designates the primary area of responsibility, provides initial training on the Sperry system and operations, and gives franchisees a copy of its Confidential Operations Manual. However, it does not assist with providing equipment or signs. After opening, Sperry offers ongoing phone and email guidance. It also provides scheduled training and assistance programs, including periodic visits at no additional cost for administrative, bookkeeping, and accounting procedures. Sperry will notify franchisees if their office's appearance or cleanliness falls below standards. It may also conduct mandatory annual system-wide meetings or conventions. Additionally, franchisees receive full access to and integration into the Sperry website. For advertising, Sperry recommends spending on grand opening promotions and local marketing, and may impose additional assessments for system-wide advertising if two-thirds of offices agree.
Initial Training Hours
18.5
Training Location
Corporate headquarters in Irvine, California
Ongoing Support
Sperry Commercial Global Affiliates, LLC provides ongoing support to its franchisees after they open. This includes being available by phone and email for guidance in operating and managing their office. Sperry also offers scheduled training and assistance programs, including periodic visits at no cost to provide sales and administrative review and help with bookkeeping procedures. If franchisees request unscheduled training or assistance, Sperry may provide it for a fee plus travel and lodging expenses. Sperry notifies franchisees if their office's appearance or cleanliness falls below standards. It may also conduct mandatory annual system-wide meetings or conventions. Additionally, franchisees receive full access to and integration into the Sperry website.
Franchise Requirements
Ideal Candidate Profile
Sperry Commercial Global Affiliates, LLC seeks franchisees who will employ at least one licensed real estate broker at their office. Franchisees must also ensure their designated Office Manager, who may be the sole proprietor, dedicates full-time hours to managing and developing the business and cannot have any competing business interests. The Office Manager's identity must be disclosed to Sperry, and any change must be reported immediately. If the Office Manager holds less than a 20% equity interest in the franchisee entity, they may need to sign a confidentiality and non-competition agreement. Sperry also recommends that franchisees hire at least two new Real Estate Brokers or Agents every six months, with a goal of reaching a total of 12 such agents in the office. Franchisees must also be members of their local Board of Realtors.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
commercial
Owner Participation
supervisory
Territory Type
limited
Staff Count
13
Territory Size Requirements
Sperry Commercial Global Affiliates, LLC defines its franchise territories as a protected Primary Area of Responsibility that matches all or a portion of a specific United States Postal Service ZIP Code. This ZIP Code is mutually agreed upon and identified in Exhibit 1 of the Franchise Agreement.
Staffing Notes
Sperry Commercial Global Affiliates, LLC requires franchisees to employ at least one designated Office Manager who has successfully completed initial training. This manager, who could be the sole proprietor, must work full-time during normal business hours managing and developing the franchised business and cannot have any competing business interests. The Office Manager's identity must be disclosed to Sperry, and any change must be reported immediately. If the Office Manager holds less than a 20% equity interest in the franchisee entity, they may need to sign a confidentiality and non-competition agreement. Sperry also recommends that franchisees hire at least two new Real Estate Brokers or Agents every six months, with a goal of reaching a total of 12 such agents in the office.