Sperry Commercial Global Affiliates Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$14,800 - $181,500
Franchise Fee
$5,000
Total US Locations
57
Business Summary
Sperry franchisees operate offices offering full-service commercial real estate brokerage services, including sales and leasing, to buyers and owners of commercial properties. Franchisees can also choose to offer business brokerage and property management services if they meet additional requirements. All operations must follow Sperry's methods and use their designated technology.
Corporate History
Sperry Commercial Global Affiliates, LLC was originally established as a corporation in Delaware in December 2014 before converting to a limited liability company in April 2016. The company operates exclusively as a franchisor for Sperry franchises, having started offering franchises in September 2016. An affiliated entity, Sperry Commercial, Inc. (SCI), along with its related entities, owns and operates three Sperry offices that are similar to the franchised locations.
Financial Overview
Investment Range
$14,800 - $181,500
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$10,000
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 experienced net losses for the past six years, including a $275,635 loss in 2024, raising concerns about its ability to continue as a going concern. Despite this, management is optimistic about future growth and profitability, and the company's sole member and affiliated entities are committed to providing ongoing financial support to ensure its continued operation.
Financing Details
Sperry Commercial Global Affiliates, LLC does not provide any direct or indirect financing options to its franchisees, nor does it guarantee any loans, leases, or other financial obligations for them.
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 has no legal disputes or litigation to report in Item 3 of its FDD.
Bankruptcy History
Sperry has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
3 years
Renewal Term
1 years
Renewal Conditions
Sperry franchisees must provide written notice to Sperry at least 120 days before their agreement expires. To renew, they must be solvent, not have abandoned the franchise, not operate in a way that endangers public health or safety or harms the Sperry brand, and not have submitted false reports. Additionally, franchisees must satisfy all monetary and material obligations to Sperry, sign a mutual release, execute Sperry's then-current Renewal Franchise Agreement (which may have different terms, though territory and recurring fees remain the same), make any necessary physical modifications to their office to meet current system standards, and pay a $1,000 renewal fee.
Training & Support Program
Franchisor Assistance
Sperry Commercial Global Affiliates, LLC provides various forms of assistance to its franchisees. Before opening, Sperry designates the franchisee's primary area of responsibility, provides initial training on the Sperry system and operations, and gives a copy of the Confidential Operations Manual. After the office opens, Sperry offers ongoing guidance via phone and email. They also provide scheduled training and assistance programs, along with periodic on-site visits for sales and administrative review, which are at no additional cost for scheduled assistance. However, unscheduled training or assistance, if agreed upon, incurs a fee of up to $750 per day plus travel expenses. Sperry will notify franchisees if their office appearance or standards are not met and requires attendance at mandatory system-wide meetings (with franchisees covering their own travel costs). Franchisees also receive full access to the Sperry website and can get recommendations for retail pricing of services.
Initial Training Hours
18.5
Training Location
Irvine, California
Ongoing Support
Sperry Commercial Global Affiliates, LLC provides ongoing support through phone and email for guidance on operations and management. The franchisor offers scheduled training and assistance programs and may conduct periodic on-site visits at no cost to the franchisee. However, unscheduled training or assistance, if agreed upon, may incur a fee of up to $750 per day plus travel and lodging. Sperry notifies franchisees of any deficiencies in their office's repair, appearance, or cleanliness. Franchisees must also attend mandatory system-wide meetings, typically held annually, covering their own travel expenses. Additionally, Sperry provides full access to and integrates franchisee information into its website.
Franchise Requirements
Ideal Candidate Profile
Sperry Commercial Global Affiliates, LLC requires franchisees to employ at least one designated Office Manager who has completed initial training and dedicates full-time hours to the franchised business, without engaging in competing activities. While active participation from principal owners is recommended, it is not strictly required. The franchisor also recommends that franchisees recruit at least two new Real Estate Brokers or Agents every six months until their office reaches a total of 12 agents. Additionally, prospective franchisees must demonstrate financial ability to cover the initial investment and pass a credit check.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
Yes
Operational Details
Location Type
commercial
Owner Participation
supervisory
Territory Type
protected
Staff Count
8
Territory Size Requirements
Sperry Commercial Global Affiliates, LLC defines its franchise territories as a protected Primary Area of Responsibility, which corresponds to all or a portion of a mutually agreed-upon United States Postal Service ZIP Code. The exact details are specified 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 completed initial training and dedicates full-time hours to the franchised business, without engaging in competing activities. Franchisees must report the manager's identity and any changes. If the Office Manager does not hold at least a 20% equity interest, they may need to sign confidentiality and non-competition agreements. Sperry also recommends that franchisees continually recruit new Real Estate Brokers or Agents, aiming to add at least two every six months until the office employs a total of 12.