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SOTHEBY'S INTERNATIONAL REALTY
Sotheby’s International Realty franchises operate real estate brokerage offices offering defined brokerage services from specified locations under the prestigious Sotheby’s International Realty® brand. The business model involves paying initial franchise fees ranging from $0 to $25,000 and ongoing royalties to the franchisor for brand licensing, marketing support, and operational guidance. They primarily target luxury real estate markets, serving high-net-worth clients buying, selling, or renting premium properties.
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Franchise Costs
6% royalty + 2% brand marketing fund (BMF); BMF has monthly minimum of $723 and maximum of $3,121 per office; $1,000-$3,000 annual software maintenance fee
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataSOTHEBY'S INTERNATIONAL REALTY Franchise Analysis
Luxury real estate brokerage carries an air of exclusivity with Sotheby's International Realty, where franchisees tap into premium markets serving elite clients. The FDD hints at steady expansion and rare disruptions, but skips Item 19 earnings disclosure entirely. What does this prestige-driven model really deliver in terms of returns, especially with sparse SBA activity and a single litigation echo? Unlock the data to see if it aligns with your portfolio.
Item 7 in the 2026 FDD pegs total initial investment at $47,250 to $331,950, with a $25,000 franchise fee—relatively low entry for brokerage, though upper end reflects buildout in high-rent luxury areas. Ongoing fees bite at 6% royalty plus 2% brand marketing fund (BMF), where BMF enforces a $723 monthly minimum up to $3,121 per office, plus $1,000-$3,000 annual software fees. No Item 19 means no median gross sales or profit figures, forcing reliance on FDD projections or private validation—critical for luxury where deals are lumpy and market cycles hit hard.
System metrics show resilience: 672 franchise locations (37 corporate) grew just 1% from 666 in 2024 to 672 in 2025, with only 1 termination, 8 transfers, and 27 projected new units signaling measured optimism. SBA records list just 2 loans averaging $515,000, far below norms for real estate franchises and indicating self-funded operators or limited small-business borrowing—potentially a stability flag. One resolved litigation involved a former franchisee claiming breach and non-renewal, but no pattern emerges. For high-net-worth investors with brokerage experience, this suits niche luxury plays; others risk overpaying for brand without proven unit economics.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How SOTHEBY'S INTERNATIONAL REALTY Compares
Key Insights
- #3 largest franchise system in Real Estate Brokerage
- One of the lowest SBA loan default rates in Real Estate Brokerage
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
SOTHEBY'S INTERNATIONAL REALTY Current | $47K – $332K | $25K | 6.0% | 672 |
| Century 21 Real Estate LLC | $35K – $279K | $25K | 6.0% | 1,734 |
| Century 21 Real Estate | $36K – $286K | $25K | 6.0% | 1,685 |
| ERA | $33K – $260K | $25K | 6.0% | 444 |
| ERA | $34K – $267K | $25K | N/A | 434 |
| REALTY ONE GROUP | $47K – $228K | $25K | 0.0% | 408 |
Real Estate Brokerage Average 21 franchises | $49K – $295K | $25K | 5.4% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 21 Real Estate Brokerage franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+31 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for SOTHEBY'S INTERNATIONAL REALTY franchisees (2021 – 2024)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
2 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
602 franchisee contacts on file from official FDD filings.
602 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
One resolved case involving a former franchisee alleging violation of franchise investment protection act, failure to renew franchise, breach of contract, and constructive termination.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a SOTHEBY'S INTERNATIONAL REALTY franchise ranges from $47,250 to $331,950. This includes a franchise fee of $25,000. Ongoing royalty fees are 6.0% of gross sales.
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