KELLER WILLIAMS REALTY - REGIONAL REPRESENTATIVE

Item 7 lays out the initial investment for a Keller Williams Realty Regional Representative at $131,000 to $423,500, covering development rights to recruit, train, and support Market Centers delivering brokerage services. Remarkably, there's no royalty fee—a rarity in franchising—offset by up to 0.5% national ad fund, 0.5% regional co-op, and a $500 monthly KPA fee. With 794 total franchise locations fueling brand strength, this model targets real estate-savvy entrepreneurs, but the absence of Item 19 earnings data leaves profitability opaque, forcing buyers to scrutinize operational margins through other lenses like associate retention metrics.

System health shows vulnerability: Regional Representative units shrank from 17 in 2022 to 16 in 2023, a -6% dip signaling possible market saturation or recruitment hurdles. Litigation notes flag an arbitration where a former rep claimed wrongful termination, non-renewal, and California Franchise Relations Act breaches—red flags for contract risks. Prospective buyers must dig into recent transfer/termination rates from Items 20/21, validate regional demand via KW's expansion pipeline, and model cash flows assuming high associate turnover in real estate.