CENTURY 21 REAL ESTATE

Item 7 lays out the financial entry: initial franchise fee of $25,000, total investment ranging $32,870-$279,000 depending on conversion vs. new buildout, covering real estate, equipment, and initial marketing. Ongoing costs bite with 6% royalty on gross commissions plus 0.5% Brand Marketing Fund, alongside fixed fees like $1,000-$2,000 yearly software maintenance and $685-$755 for One21 platform—equating to $140-$230 monthly extras. No Item 19 means no average revenue or profit figures, forcing buyers to dig into market comps; conversions keep startup costs lower since you're leveraging an existing brokerage, but expect heavy reliance on the brand's referral network and training to compete in residential and commercial sales.

System metrics raise flags: 1,870 locations in 2022 shrank to 1,807 in 2023 (-3% growth), with just 10 projected new units, 52 terminations, 5 non-renewals, but 95 transfers suggesting internal reshuffling over outright exits. Litigation in Items 20/21 centers on contract breaches, unpaid royalties, and post-term trademark fights—typical for real estate but worth vetting local enforceability. For a buyer, probe recent FDD amendments, interview converting brokers on referral volume, and model commissions against housing cycles; this isn't a passive income play but a high-volume brokerage bet on Century 21's enduring name.