COLDWELL BANKER REAL ESTATE

Item 7 outlines the initial investment range of $37,050 to $553,700, covering everything from the $20,000 franchise fee for the first office ($5,000 for extras) to real estate costs, equipment, and initial marketing. Ongoing fees hit hard at 5.5% royalty (dropping to 3% over $1M gross revenue) plus 2% into the CMF/ad fund (capped at $621-$1,728 monthly per office) and $83-$250 monthly software fees—eating into margins without Item 19 earnings data to benchmark profitability. The absence of Item 19 is a red flag, leaving investors blind to actual franchisee revenues or profits, forcing reliance on opaque averages or peer conversations.

System health shows 134 franchise locations versus just 1 corporate-owned, with modest growth: 5 projected new units amid 3 non-renewals and 5 transfers per Item 20. Ten SBA loans averaging $626,500 signal franchisees seeking big financing, possibly for scaling, but litigation notes in Item 3 highlight frequent clashes over unpaid fees, trademark issues post-termination, and counterclaims of fraud—indicating potential operational strains. For real estate veterans eyeing commercial brokerage, the low entry appeals, but without revenue disclosure and amid legal friction, this feels riskier than residential peers; crunch your local market viability first.