About Sotheby's International Realty ® Franchise
Sotheby's International Realty is a prestigious luxury real estate franchise that has been offering franchise opportunities since 2004.
Backed by Realogy Holdings Corp, the brand represents the pinnacle of residential real estate, connecting affluent buyers and sellers of extraordinary properties worldwide.
The franchise fee ranges from $0 to $25,000.
Sotheby's International Realty ® Franchise Cost & Fees
Minimum Investment
$41K
Average Investment
$175K
Maximum Investment
$310K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $0 to $25,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenue monthly with a minimum of $723 and a maximum of $2,801 per office per month | National brand fund |
| Total Investment Range | $40,650 – $310,000 | Includes build-out, inventory, working capital |
The investment range of $41K–$310K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue) and marketing fee (2% of Gross Revenue monthly with a minimum of $723 and a maximum of $2,801 per office per month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $0 | $25,000 |
| Real Estate | $0 | $0 |
| Leasehold Improvements | $0 | $105,000 |
| Building Signs | $700 | $20,000 |
| Yard Signs | $3,500 | $7,500 |
| Open House Signs | $900 | $2,500 |
| Miscellaneous Rider Signs | $200 | $300 |
| Name Badges | $400 | $500 |
| Miscellaneous | $250 | $500 |
| Printed Materials | $5,000 | $25,000 |
| Insurance | $500 | $4,000 |
| Legal Expenses | $0 | $4,000 |
| Orientation – Travel Expenses and Costs | $200 | $2,700 |
| Computer Equipment for Electronic Data Transfer System | $5,000 | $10,000 |
| Website | $1,000 | $35,000 |
| MLS/Data Feed Transmission | $0 | $8,000 |
| Additional Launch Expenses (Grand Opening) | $3,000 | $10,000 |
| Interior Branding | $5,000 | $10,000 |
| Additional Funds (first 3 months after opening) | $15,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 per Franchise Agreement |
| Technology Fee | CRM and Consumer Platform/Productivity Suite: $0 - $425 per year per license; Lead Management System: $0 - $5,000 per year |
| Audit Fee | Estimated cost for an audit is $450 per day |
| Minimum Annual Royalty Fee | Will vary |
| Computer Hardware and Software Maintenance and Support | $1,000 - $2,000 per year |
| Late Charges and Interest | Highest legal rate (not to exceed 1.5% per month) plus the highest allowable legal late charge |
| Liquidated Damages | Equal to combined monthly average of Royalty Fees, advertising contributions, and any other fees payable from Opening Date through early termination date, multiplied by the lesser of 36 or remaining full months in Term |
| Education Fees and Expenses | Varies (course fees, travel, lodging, meals, and other expenses) |
| Special Assistance | As negotiated |
| Global Networking Event Fee | $2,195 per registrant for conference |
| Leadership Forum | $1,995 per registrant |
| Costs and Attorney Fees | Will vary (reimbursement of franchisor's costs for enforcing agreement) |
| Indemnification | Will vary (reimbursement for losses/costs incurred due to franchisee's operation) |
| Insurance | Cost of insurance |
| Taxes | Will vary |
| Relocation/Improvement Fees | Will vary (payable to third parties as incurred) |
| Product/Service Fees | Will vary |
| Testing/Inspection Fees to Approve Supplier | See remarks (not currently charged, but franchisor has right to charge reasonable fees) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 2 days |
| Classroom Training | 14.00 |
| On-the-Job Training | 0 |
| Training Location | Virtual or Near our headquarters in New Jersey |
| Additional Training | Ongoing education courses, seminars, or conferences are available online, at the corporate office, or elsewhere. Attendance is voluntary, and franchisees must pay for course fees, travel, lodging, meals, and other expenses. Specialized learning teams provide enhanced learning resources. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution. Franchisees must operate only from approved offices and promote services within their served market. The franchisor and its affiliates retain the right to own, operate, franchise, or license other real estate brokerage businesses anywhere, including in immediate proximity to a franchisee's office, without compensation to the franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Conditions | No renewal rights. If an additional term is granted, it may require signing a new agreement with materially different terms. Approval for an additional Branch Office may extend the Franchise Agreement term for 10 years. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Approval of transfer is subject to the franchisee not being in default, the transferee meeting franchisor standards (licensed broker, business experience, financial condition), execution of the then-current franchise agreement and guaranty, payment of outstanding indebtedness, payment of a $5,000 transfer fee, execution of a general release by the transferor, an audit of operations, and purchase of tail coverage on errors and omissions insurance. |
| Termination for Cause | The franchisor may terminate for material breach, including failure to timely report transactions or pay fees, underreporting by 5% or more, refusal to permit audit, unauthorized transfer, failure to comply with laws, operating other businesses in the office, improper use of Marks, failure to begin operation, creating a security interest without consent, or any other material or noncurable default (e.g., suspension of broker's license, conduct impairing goodwill, bankruptcy, repeated defaults, misrepresentation, operating a competing business, abandonment). |
| Non-Compete Period | During the term and 1-2 years after termination/transfer |
| Non-Compete Details | During the term, the franchisee, owners, officers, guarantors, and Responsible Broker cannot directly or indirectly engage in any other real estate brokerage business (except authorized excluded businesses) or divert business. After a transfer, for 24 months (or remaining term, whichever is less), the transferor and their restricted parties cannot operate a competing residential real estate brokerage within a two-mile radius of any office. For start-up companies, a one-year post-term restriction applies to the franchisee and restricted parties from engaging in real estate brokerage business from any office. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee, if an individual, or its Owners, if an entity, must participate in the management of the Franchise. They must exercise continuous best efforts to maintain, develop, and promote the Franchise and enhance the Marks' goodwill. A Responsible Broker must be retained and comply with all applicable laws. For additional offices, an office manager must be appointed to supervise activities. |
| Required Suppliers | Franchisees must purchase building signs, yard signs, stationery, business cards and other Sotheby’s International Realty trademark-bearing items from an Approved Supplier, unless prior written permission is received to use an alternative supplier. |
| Supply Restrictions | The franchisor or RSG may limit the number of Approved Suppliers to obtain volume discounts and/or assure consistent quality and adequate supplies for franchisees. The franchisor may charge reasonable testing and/or inspection fees for alternative suppliers. |
| Franchisor Revenue from Suppliers | $1,736,929, or 0.02% of total 2021 Realogy Group revenue, was from required purchases or leases, or purchases or leases subject to mandatory standards, specifications and other requirements by the franchisees of the Real Estate Affiliates and us. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor or a related company may offer financing to assist with conversion costs or growth opportunities, or for acquisition opportunities and other business-related expenses. This financing is primarily in the form of promissory notes: Conversion Promissory Notes (CPN) and Expansion Promissory Notes. CPNs have a 9-year term, no down payment, and may offer principal forgiveness based on annual Gross Revenue thresholds. Expansion Notes have variable terms, no down payment, and are interest-bearing (18% per annum or highest legal rate allowed by law upon payment default). All notes require a personal guaranty from all owners and their spouses, and a security agreement on all business assets. |
Sotheby's International Realty ® Franchise Earnings — Item 19
Sotheby's International Realty ® does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Sotheby's International Realty ® does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Sotheby's International Realty ® Litigation & Risk Flags
Clean Litigation RecordSotheby's International Realty ® has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sotheby's International Realty ® System Growth
Total Units
688
Franchised
647
Company-Owned
41
Sotheby's International Realty ® currently operates 647 franchised locations and 41 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 40 | 21 | 672 |
| 2020 | 35 | 37 | 670 |
| 2021 | 44 | 26 | 688 |
Transfers: 5 | Closures: 24
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$7983.0M
Net Income
$343.0M
Total Assets
$7210.0M
Audited by PricewaterhouseCoopers LLP for year ending December 31.
Sotheby's International Realty ® Franchise — FAQ
The total investment to open a Sotheby's International Realty ® franchise ranges from $40,650 to $310,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $0 to $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sotheby's International Realty ® charges a royalty fee of 6% of Gross Revenue of gross sales, plus a 2% of Gross Revenue monthly with a minimum of $723 and a maximum of $2,801 per office per month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sotheby's International Realty ® Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sotheby's International Realty ® to ensure you have the most up-to-date version.
Sotheby's International Realty ® does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Sotheby's International Realty ® has been franchising since 2004. The FDD shows an investment range of $40,650-$310,000, a 6% of Gross Revenue royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $0 to $25,000 and the total investment ranges from $40,650 to $310,000 depending on location size and market. A minimum of $15,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sotheby's International Realty ® and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sotheby's International Realty ® or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com