25 Substantial Fees Every Real Property Management Franchisee Needs to Know About

Detailed Information on Real Property Management’s Initial Franchise Fee, Royalty Fee + 23 Other Fees (Items 5 and 6, 2026 FDD)

1.  Initial Franchise Fee:  $5,000 to $69,900

• The initial franchise fee is $69,900 for a standard Real Property Management franchise (the “Minimum Initial Franchise Fee”), which is generally granted within a centralized metropolitan area that has a population that exceeds 100,000 people and more than 10,000 single family rentals.

• Real Property Management reserves the right to grant franchises to new and current franchisees within an isolated metropolitan area that has a population of less than 100,000.

• Real Property Management is a member of the International Franchise Association (“IFA”) and participates in the IFA’s VetFran Program. If you are a United States honorably discharged veteran (as such term is defined by Real Property Management in its sole discretion) who meets Real Property Management’s qualifications for purchasing a franchise, Real Property Management will discount the Minimum Initial Franchise Fee ($69,900) by 15%.

• If you are a qualified existing Real Property Management franchisee buying an additional franchise or if you are a qualified new franchisee buying multiple Real Property Management franchises at the same time, you will receive a 50% discount off the Minimum Initial Franchise Fee on your second (or subsequent) franchise; provided that you own a controlling ownership interest in each applicable franchise and the transaction is not subject to an arrangement with a broker.

• If you have been a Real Property Management franchisee for at least 1 year, you meet its established requirements, and you are approved by it, you may also purchase a franchise for a specific area with population of 60,000 or less located within a short distance (no more than a 2-hour drive) from your existing franchise location.

• The franchise fee for such franchises ranges from $5,000 to $10,000, depending on the population of the territory in which the franchise is to be located, provided that to receive the reduced franchise fee, the transaction cannot be subject to an arrangement with a broker.

• Specifically, the initial franchise fee will be $10,000 for populations of 40,000 to 60,000, $7,500 for populations of 20,000 to 40,000, and $5,000 for populations of less than 20,000 people.

• Current franchisees that wish to operate an additional franchise in these smaller population areas must be in good standing, have at least 80 units under management, and have an established infrastructure.

• If you have been a franchisee of one of Real Property Management’s affiliates for at least 2 years and you purchase a franchise from Real Property Management, you will receive a 10% discount on the initial franchise fee (the “Additional Concept Discount”).

2.  License Fee:  the greater of (i) 7% of Non-Maintenance Gross Sales, plus 3% of Maintenance Revenues; or (ii) the Minimum License Fee. The Minimum License Fee will be $0 per month for months 1-4; $250 per month for months 5-12; $500 per months for months 13-24; and $1,000 per month thereafter until the end of the term of the Franchise Agreement. In the event a franchisee signs mid-month, the month in which they signed and the following month will be treated as month 1.

• Due Date:  15th day of each month.

3.  Marketing and Promotion (MAP) Fee:  2% of Non-Maintenance Gross Sales

• Due Date:  15th day of each month.

4.  Local Marketing Groups (LMGs):  not to exceed 5% of Non-Maintenance Gross Sales for the previous calendar year. As of the issuance date of the Franchise Disclosure Document, Real Property Management may require that a portion of your LMG contribution (currently, 2% of Non-Maintenance Gross Sales) be paid for use towards the Neighborly marketing and brand awareness initiatives.

• Due Date:  Determined by LMG members.

• Real Property Management may designate local advertising markets and advertising cooperatives and/or local marketing groups for such markets, and if designated, you must participate in and contribute to the LMG’s advertising and marketing programs in your market.

• Your contribution to the LMG will count towards any required Minimum Local Marketing Spending but any required Minimum Local Marketing Spending will not represent a limit on your LMG contributions.

5.  Minimum Local Marketing Spending:  the greater of: (a) $32,000 per calendar year or (b) 5% of Non-Maintenance Gross Sales for the previous calendar year. Monthly fees for the Digital Marketing Program are a minimum of $599 per office. New offices pay $499 per month, per office for the first 12 months of operation.

• Due Date:  Annually.

• You must spend this amount annually on approved local marketing and advertising of your Business in addition to any MAP Fees you must pay to Real Property Management.

• Amounts paid to an LMG, the Digital Marketing Program, and certain other amounts of local advertising spending will count towards the Minimum Local Marketing Spending, as more particularly described in the Operating Manual.

6.  Software System Monthly Fees:  currently, $121

• Due Date:  Paid monthly (currently on the 15th of each month) via ACH.

7.  Late Fees (on Software System Fees):  $25 per month or the maximum amount allowed under law, whichever is less

• Due Date:  As incurred.

• If you fail to pay the Software System Fees within 30 days of the invoice date, you will be required to pay this late fee.

8.  Task Management and Lead Management Software Fee:  Real Property Management’s then-current monthly fee; currently, $100 for the management of up to 110 property units; additional charge of $0.90 per unit applies after the initial 110 property units

• Due Date:  Paid monthly (currently on the 15th of each month) via ACH.

9.  Monthly BackOffice Bookkeeping Assistance Fee:  currently, $17 per property unit under management, $400 minimum; hourly rate (currently $75/hour) applies to certain additional work, including data entry error corrections upon the parties’ entering into the Bookkeeping Assistance Program Service Agreement

• Due Date:  Monthly, when you are billed, beginning the month after your Franchise Agreement is signed.

• You must pay your BackOffice Bookkeeping Assistance Fee directly to Real Property Management’s affiliate, BackOffice.

• A catch-up fee may also apply.

• As of the date of the Disclosure Document, Real Property Management doesn’t anticipate this fee to increase by more than 30% annually in addition to any direct price increases from third-party vendors.

10.  Monthly HelpDesk Plus Fee:  currently, $400 per month

• Due Date:  Monthly, when you are billed, beginning the month that you are no longer required to participate in the Monthly BackOffice Bookkeeping Assistance program.

• You must pay your Monthly HelpDesk Plus Fee directly to Real Property Management’s affiliate, BackOffice.

• As of the date of the Disclosure Document, Real Property Management doesn’t anticipate this fee to increase by more than 30% annually in addition to any direct price increases from third-party vendors.

11.  Quarterly Bank Review Fee:  $350 for the first quarter; $250 for every quarter thereafter

• Due Date:  Quarterly, when you are billed, beginning the month that you are no longer required to participate in the Monthly HelpDesk Plus program and sign up for the Quarterly Bank Review service.

• You may choose to participate in Real Property Management’s Quarterly Bank Review. If you choose to participate, you must pay your Quarterly Bank Review Fee directly to Real Property Management’s affiliate, BackOffice.

• As of the date of the Disclosure Document, Real Property Management doesn’t anticipate this fee to increase by more than 30% annually in addition to any direct price increases from third-party vendors.

12.  Fine for Marketing Outside of Territory:  $500 per violation

• Due Date:  When you are billed.

• Payable per violation if you market, solicit customers, perform services, or sell products related to the Business outside of your Territory without Real Property Management’s prior written consent.

13.  Annual Convention/Reunion Fees:  currently, $1,000

• Due Date:  When you are billed, which may be via automatic bank draft, or within 30 days after the Annual Convention via automatic bank draft.

• Real Property Management charges you a per-person registration fee to attend the Annual Convention/Reunion. You must attend the Annual Convention/Reunion each year.

• Real Property Management will charge you $2,000 if you fail to attend or participate on a pro-rata basis based on the number of days you miss at said convention.

• The fees may increase in the future, but as of the date of the Disclosure Document, Real Property Management doesn’t anticipate the fees to increase by more than 30% annually.

14.  Transfer Fee:  $10,000

• Due Date:  Before transfer.

• You must pay Real Property Management this fee when you sell your Business, but it may discount or waive the transfer fee if the transfer is to a legal entity you control or to a member of your immediate family, or if an ownership change within the same entity or the same ownership group already on the Franchise Agreement is greater than 20%.

15.  Late Fees (Franchise Agreement):  $10 per day

• Due Date:  On demand.

• Applies to overdue fees from the due date until all sums are paid.

16.  Dishonored Check or ACH Draft:  $50

• Due Date:  On demand.

• You must pay Real Property Management for each check returned or ACH draft refused by your financial institution for insufficient funds in your account.

17.  Interest:  12% on unpaid balances

• Due Date:  On demand.

• Payable on all overdue amounts. The 12% charge is calculated as a per annum rate but may be collected on demand, including weekly or monthly through automatic bank draft.

18.  Audit:  cost of audit plus expenses, plus any amount owed as shown by the audit, plus interest and late fees

• Due Date:  When you are billed.

• Payable if Real Property Management makes a finding of an understatement of Non-Maintenance Gross Sales or Maintenance Revenues of 2% or more, or if you fail to provide requested information within 30 days of Real Property Management’s initial request.

• The fees may increase in the future, but as of the date of the Disclosure Document, Real Property Management doesn’t anticipate the fees to increase by more than 30% annually.

19.  Audit Noncompliance Fee:  $500 per document (up to $2,500 per audit) that you fail to timely make available to Real Property Management in connection with an audit; and/or cost of audit, if audit is rescheduled due to your failure to cooperate with the audit

• Due Date:  On demand.

• Payable if you fail to timely make available to Real Property Management requested documents in connection with an audit.

• In addition, if Real Property Management must reschedule an audit due to your lack of cooperation, you will be required to pay for the cost of the audit.

20.  Renewal Fee:  $3,000

• Due Date:  On renewal.

21.  Amendment Fee:  $300

• Due Date:  When you are billed.

• You must pay Real Property Management a processing fee for modifications to its Franchise Agreement that are made at your request.

22.  Supplemental Training:  currently, $250 per day, plus your costs and expenses in attending

• Due Date:  Time of training.

• If you request or are required to repeat training in addition to the initial training program, Real Property Management reserves the right to charge you a training fee, plus you must pay your costs and expenses in connection with such training.

• As of the date of the Disclosure Document, Real Property Management doesn’t anticipate this fee to increase by more than 30% annually in addition to any direct price increases from third-party vendors.

23.  Ongoing Training:  currently, $600 to $1,500 (depending on location of training and number of days of training)

• Due Date:  Time of program.

• You may also be required to attend 2 or more ongoing training sessions per year, if offered, which will not exceed 4 days. Real Property Management may charge you a tuition fee and you must pay for your travel expenses related to such training.

• The range of the costs described herein is the current estimate of the tuition fee.

• As of the date of the Disclosure Document, Real Property Management doesn’t anticipate this fee to increase by more than 30% annually in addition to any direct price increases from third-party vendors.

24.  Indemnification and Attorneys’ Fees and Costs:  varies according to loss

• Due Date:  On demand.

• If Real Property Management must engage an attorney to enforce its rights under the Franchise Agreement and it prevails, or if it is sued because of something you do or fail to do, you must indemnify Real Property Management and/or reimburse it for all costs, including reasonable attorneys’ fees (which may include outside counsel fees and in-house legal costs charged at rates comparable to outside attorneys), interest, court costs, and expenses expended or incurred in enforcing its rights.

25.  Tax Reimbursement:  varies according to tax

• Due Date:  When you are billed.

• You must pay Real Property Management or to taxing authorities (as applicable) an amount equal to any sales tax, use tax, gross receipts tax, documentary stamp tax, or similar tax (other than income tax), fees, or charges imposed on Real Property Management due to any required payments you make to it.