Updated July 13, 2020.
Detailed Estimates of Real Property Management Franchise Costs Based on Item 7 (Estimated Initial Investment) of Real Property Management’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $55,000
- If you are approved as a new franchisee, your Minimum Initial Franchise Fee will be $55,000. You may qualify for a discount on the initial franchise fee.
- You must pay the initial franchise fee in full when you sign the Franchise Agreement.
- Although the franchisor does not typically finance, it may agree to finance a portion of the initial franchise fee, depending on your credit-worthiness, the collateral that you have available, and its then-current financing policies.
2. Marketing (3 months): $5,000
3. Real Estate/Rent: $500 to $5,000
- You must lease or otherwise provide a suitable facility for the operation of the Business. Typically, the facility will range in size from 500 to 1,000 square feet of space. Lease costs will vary based upon square footage, cost per square foot, and required maintenance costs.
- The low estimate is based on an assumption that you will have to pay a security deposit equal to one month’s rent to lease the facility and is based on leasing a facility of 500 square feet.
- The high estimate is based on an assumption that you will have to pay a security deposit equal to 2 months’ rent to lease the facility and is based on leasing a facility of 1,000 square feet at a higher cost per square foot.
- The estimated range of costs in this category only includes your costs to enter into a lease agreement for the facility. Estimated rental costs for an additional 3 months are included with the category “Additional Funds”.
4. Vehicle: $3,000 to $30,000
- If you choose to wrap or logo your vehicles, such wraps or logos must meet the franchisor’s specifications as set forth in the Operating Manual. The Marks must then be professionally applied as the franchisor specifies before the vehicles are put into service.
- The franchisor does not sell or lease vehicles. An existing vehicle can be converted according to the franchisor’s specifications for use in the franchised business or you may choose to acquire a vehicle which meets the franchisor’s specifications.
- The estimated low cost reflects the cost of having the Marks applied to an existing vehicle which meets the franchisor’s standards. The estimated high cost reflects the purchase of a vehicle meeting the franchisor’s standards plus having the Marks applied.
5. Insurance: $2,000 to $5,500
- Factors that may affect your cost of insurance include the size and location of the franchised business, value of the leasehold improvements, number of employees, and other factors.
6. Equipment and Supplies: $2,500 to $5,000
- If you already own an existing business similar to the franchise, you may own much of the necessary equipment, supplies, and inventory to begin the operation of your franchise.
- The low estimate shown here assumes that you already own an existing business similar to the franchise. The high estimate shown here assumes you do not own an existing business, and includes office and field equipment, inventory, and signage needed to equip your franchise in accordance with the franchisor’s standards.
- Both estimates include printed material (business cards, stationery, brochures, marketing materials, signage, etc.).
7. Training, Travel, Lodging, and Food: $1,000 to $2,000
- The cost of initial training is included in the Minimum Initial Franchise Fee, but you are responsible for transportation and expenses for meals and lodging while attending training. The total cost will vary depending on the number of people attending, how far you travel, and the type of accommodations you choose.
8. Property Management Software (one-time set-up fee, plus 3 months’ subscription fee): $1,024
- You must purchase and use the approved Property Management Software (currently, Appfolio). This software must be utilized for all properties managed, except in those limited instances where the software is not in compliance with local or state laws in your area.
9. System Technology Fee (3 months): $384
10. Task Management Software (3 months per user): $66
11. Licenses, Permits, and Subscriptions: $500 to $1,000
- State and local government agencies typically charge fees for construction permits and operating licenses, including real estate brokerage license fees. Your actual costs may vary from the estimates based on the requirements of state and local government agencies.
- You are expected to join the local Chamber of Commerce and other local business networking organizations.
12. Legal and Accounting: $250 to $5,000
- You will need to employ an attorney, an accountant, and other consultants to assist you in establishing your Business. Additionally, the franchisor strongly recommends that you hire an attorney to review all forms or documents that are provided to you for use in your Business to ensure that they meet the specific legal requirement in your jurisdiction.
- These fees may vary from location to location depending upon the prevailing rates of local attorneys, accountants, and consultants.
13. Additional Funds (3 months): $30,000 to $40,000
- The franchisor recommends that you have additional funds available during the start-up phase of your franchise. These amounts are the franchisor’s estimates of the amount needed to cover your expenses for a 3-month period from the date you open for business. The franchisor recommends you have funds available for a longer time period and 3 months should be viewed as the minimum time you should plan for.
- These figures are only estimates and the franchisor cannot assure you that you will not have additional expenses starting your franchise.
14. Total: $101,224 to $154,974
- In compiling this chart, the franchisor relied on its and its affiliates’ industry knowledge and experience. The amounts shown are estimates only and may vary for many reasons, including, but not limited to, the size and condition of your facility, the capabilities of your management team, where you locate your Business, and your business experience and acumen.