Risk Score
Pending analysis
Investment Range
$119,600 - $896,150
Franchise Fee
$7,500
Total US Locations
91
Business Summary
The Agency offers franchises for real estate brokerage offices that specialize in catering to high-end real estate buyers and sellers globally. Franchisees operate these offices under an existing real estate broker's license, promoting The Agency's brand and standards. This involves using proprietary electronic platforms, innovative advertising, and public relations to develop the network and ensure client satisfaction.
Corporate History
The Agency Real Estate Franchising, LLC (TAREF) was established on March 18, 2014, in Delaware, to sell The Agency franchises. The company began offering franchises in 2015. TAREF's immediate parent company is The Agency Holdco, Inc. Following a merger in April 2022 between Agency Holdco and Suitey, Inc. (operating as Triplemint), the ultimate parent company became RealTech Holdings, Inc.
Financial Overview
Investment Range
$119,600 - $896,150
Franchise Fee (Low)
$7,500
Franchise Fee (High)
$75,000
Royalty %
6%
Marketing %
1.25%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$300,000
Working Capital
$54,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Agency's financial condition, as indicated in its financial statements and explicitly highlighted in the FDD's Special Risks section, raises questions about its ability to provide services and support to franchisees. The company has a cash balance of $0 as of December 31, 2024, and March 31, 2025. It also has substantial receivables from related parties, totaling over $12.5 million in 2024, and large payables to related parties, indicating significant reliance on intercompany transactions. Due to its financial condition, The Agency has been required by Illinois and Maryland state regulators to defer the collection of initial franchise fees and other initial payments from franchisees until The Agency completes its pre-opening obligations and the franchisees begin operations.
Financing Details
The Agency does not offer any direct or indirect financing to its franchisees. This means that The Agency will not provide loans, guarantees for notes or leases, or any other financial assistance to help franchisees start or operate their business. Franchisees must secure their own funding from third-party sources.
Performance Metrics
Total US Locations
91
Franchised Units
54
Corporate Units
37
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
The Agency has been involved in four litigation cases. One recent case, filed in January 2024, was a class-action lawsuit alleging that The Agency participated in a system causing inflated buyer broker commissions. The Agency settled this matter in June 2024 by agreeing to pay $3,750,000 to the plaintiffs. Another case, filed in September 2019 and dismissed in December 2023, involved The Agency's CEO, Mauricio Umansky, and UMRO Realty Corp., accused of fraud and breach of duty in a real estate transaction. The parties settled this by making a $75,000 charity contribution. A third case, filed in March 2019 and settled in December 2019, also involved UMRO Realty Corp. and Mauricio Umansky, where plaintiffs alleged the sale of a luxury estate below market value and self-dealing, resulting in an $8,250,000 settlement payment. The earliest case, filed in December 2015 and settled in June 2017, accused The Agency and its executives of coordinating to publish a disparaging article that diminished property value, resulting in a $205,000 payment from the defendants.
Bankruptcy History
The Agency has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew an Agency franchise, franchisees must provide nine months' advance notice to The Agency. They must be in good standing, meaning they have not defaulted three or more times within any 24-month period. Franchisees are also required to provide a general release of claims, if permitted by state law, and update their office to meet The Agency's then-current standards. Finally, they must sign The Agency's current franchise agreement, which may include terms that are significantly different from their original agreement, including fees. For Limited Purpose Offices, franchisees must sign the then-current addendum for such offices.
Training & Support Program
Franchisor Assistance
The Agency provides comprehensive assistance to its franchisees. Before opening, The Agency offers initial support for transitioning into its system within 30 days of signing the Franchise Agreement. This includes a nine-week training program for the managing broker and two other key management personnel. Franchisees also receive an electronic copy of the Operations Manual and access to The Agency's proprietary Intranet, which contains marketing materials, system standards, and operational tools. After opening, The Agency provides post-opening support and training for supervisory employees on its software and other systems. They also offer optional staff training courses, seminars, and conferences, though these may incur additional fees. The Agency's representatives may conduct group or individual meetings and offer consultation and guidance on office operations and management. Franchisees are required to attend annual business conferences, such as The Agency Global Forum, and an annual leadership summit for high-level management, with associated fees and travel expenses. Additionally, The Agency offers marketing support, resources, and optional real estate-related products like public relations and new development consulting, which are provided at the franchisee's request and expense.
Initial Training Hours
17
Training Location
Via video conferencing
Ongoing Support
The Agency provides ongoing support to its franchisees after they open. This includes post-opening support and training for supervisory employees on BrokerWolf and other third-party tools and systems, generally provided virtually or from The Agency's corporate office in Beverly Hills, California. Optional training courses are also made available periodically online or through the Intranet, with franchisees responsible for course fees and travel expenses. The Agency's representatives will conduct periodic group or individual meetings and offer consultation and guidance regarding office operations and management. Franchisees are also required to attend annual live business conferences, such as The Agency Global Forum, and an annual leadership summit. Furthermore, The Agency offers marketing support, assistance, resources, and guidance, at the franchisee's request and expense. Upon reasonable request and at its option, The Agency may also provide additional real estate-related products and services, such as public relations and new development consulting and marketing services.
Franchise Requirements
Ideal Candidate Profile
The Agency is looking for franchisees who are existing real estate brokerages or individuals capable of operating a real estate office under an existing real estate broker's license. Franchisees must appoint a supervising or managing real estate broker who has a valid state license, successfully passes a background check, and completes The Agency's training program. The ideal candidate will also designate a marketing account manager and an agent experience manager, who are required to attend the initial training program.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
Yes
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Limited
Staff Count
18
Territory Size Requirements
The Agency defines territory sizes and boundaries at its discretion. This is generally based on the franchisee's real estate transaction history from the 12 months prior to their application. Other factors considered include the number of offices the franchisee commits to developing, the population of the proposed area, market potential, the number of residential homes, and the character of the neighborhoods. While there is no minimum size, a typical territory for one office is expected to have a population of approximately 100,000.
Staffing Notes
The Agency requires franchisees to appoint a supervising or managing real estate broker who holds a state license, passes a background check, and successfully completes The Agency's training program. This managing broker is also responsible for maintaining confidentiality and trade secrets. Additionally, the initial training program requires attendance from the managing broker, a marketing account manager, and an agent experience manager. The Agency's initial investment estimates are based on operating a single office with a typical staff of 15 agents. Franchisees must provide The Agency with the names and contact information of their managing broker and all licensed real estate brokers and salespersons.