Realty World Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$18,600 - $195,000
Franchise Fee
$2,500
Total US Locations
142
Business Summary
Realty World Inc. operates and franchises real estate brokerage businesses under the "Realty World" name and marks. These businesses offer authorized real estate products and services, using the franchisor's specific business formats, methods, rules, and procedures. Realty World Inc. also offers specialized programs, including a MOBI™ Program for mobile real estate services with up to two agents, and a Boutique Conversion Program for existing real estate brokerage businesses with three to five agents.
Corporate History
Realty World Inc. was incorporated on June 12, 1997, in Nevada, initially under the name AC Capital, Inc. It later changed its name to Realty World America, Inc. in September 1997, and then to Realty World Inc. in March 2006. Realty World Inc. began offering franchises for real estate brokerage businesses in June 2000. The company has no parent or predecessor during the 10 years preceding its most recent fiscal year.
Financial Overview
Investment Range
$18,600 - $195,000
Franchise Fee (Low)
$2,500
Franchise Fee (High)
$18,000
Royalty %
4%
Marketing %
1%
Equipment Costs (Low)
$1,100
Equipment Costs (High)
$105,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Realty World Inc. provides audited financial statements. The company reported a net loss of $90,213 in 2024, compared to net incomes of $3,736 in 2023 and $86,030 in 2022. Cash and cash equivalents decreased from $509,128 in 2022 to $177,156 in 2024. Despite the net loss and declining cash balance in the most recent fiscal year, the company maintains positive working capital, with $257,961 in 2024, and its auditors issued an unqualified opinion, indicating the financial statements present fairly in all material respects.
Financing Details
Realty World Inc. offers direct financing for a portion of the initial franchise fee, which can be paid in installments over a period not exceeding 6 months. This financing is not available to franchisees under the MOBI™ Program or the Boutique Conversion Program. If a franchisee fails to make an installment payment when due, interest will be charged on the outstanding principal at the lesser of 18% per year or the highest legal rate. Realty World Inc. does not charge a prepayment penalty, but no interest paid is refundable. All payments under the promissory note are non-refundable. Shareholders of a corporate franchisee must personally guarantee obligations under the promissory note.
Performance Metrics
Total US Locations
142
Franchised Units
142
Corporate Units
0
Avg Square Footage
2,000
Franchising Since
2000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Realty World Inc. had one disclosed litigation case, Realty World Inc. v. NextHome, Inc., which was filed in October 2016 and resolved on February 1, 2018. This case involved allegations of breach of a master license agreement, trademark infringement, and interference with economic advantage against NextHome, Inc., a former master licensee. NextHome, Inc. also filed counterclaims, including for breach of the master license agreement and trademark infringement. The parties ultimately resolved their dispute through a settlement agreement and mutual general release, with the lawsuit formally dismissed with prejudice in February 2018. Realty World Inc. has no other reportable litigation.
Bankruptcy History
Realty World Inc. has no bankruptcy history to disclose in its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Realty World Inc. franchisees must give timely notice to the franchisor, maintain possession of their business premises or secure acceptable new ones, remodel their business to meet current franchisor standards (regardless of cost), pay a renewal fee of $1,500, and sign the franchisor's then-current franchise agreement and any other necessary documents, which may have materially different terms from their original agreement. Franchisees and their owners must also sign general releases of claims against the franchisor.
Training & Support Program
Franchisor Assistance
Before opening, Realty World Inc. assists franchisees by approving proposed office sites and providing initial training for the Designated Manager and one employee (2-3 days at headquarters or online). They also provide access to the Operations Manual and specifications for required equipment, furniture, fixtures, and signs. During operation, Realty World Inc. administers the National Advertising and Promotional Fund, offers ongoing advice on business operations, approves advertising materials, provides a list of approved vendors, and may offer additional training courses for managers. The franchisor also grants access to the Operations Manual and communicates programs and training directly to Sales Representatives.
Initial Training Hours
24
Training Location
Our principal office in Newport Beach, California, at a designated training facility of our choice or online
Ongoing Support
After opening, Realty World Inc. administers a National Advertising and Promotional Fund, provides ongoing advice on business operations, and offers additional training for Designated Managers and experienced employees (up to 2 courses, 3 days total per year). Franchisees are required to attend an annual meeting (up to 5 days) for which they pay a registration fee. The franchisor also communicates programs, systems, education, and training directly to Sales Representatives and provides ongoing training through Realty World® University, available in person or online without additional fees.
Franchise Requirements
Ideal Candidate Profile
Realty World Inc. seeks qualified individuals who are licensed real estate brokers. The franchisee or one of its owners must hold a valid state real estate broker license to act as the Broker of Record. Additionally, a Designated Manager must be appointed to be the primary point of contact with the franchisor and must satisfactorily complete initial training. If the franchisee is a legal entity, its owners must personally guarantee the obligations under the franchise agreement.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Realty World Inc. franchisees do not receive an exclusive territory and may face competition from other franchisees and company-owned outlets. There are no limitations on a franchisee's ability to solicit customers in any location. The standard franchise offering requires a minimum office size of 500 square feet, with typical offices ranging from 500 to 3,500 square feet. However, the MOBI™ and Boutique Conversion programs do not require a physical office, operating virtually. For these programs, the operation is within the geographic area in and around a specified city and state.
Staffing Notes
Realty World Inc. requires that each franchised business have a Designated Manager who has satisfactorily completed their initial training program. Additionally, a Broker of Record, who holds a valid state real estate broker license, must be designated to supervise the business. The franchisor requires franchisees under the MOBI™ Program to operate with no more than two agents, and those under the Boutique Conversion Program to have between three and five agents. All Sales Representatives must join and maintain membership in good standing with a local board of realtors and participate in a multiple listing service. The franchisor has the right to communicate its programs, systems, education, and training directly to Sales Representatives.