About Coldwell Banker Commercial Franchise
Coldwell Banker Commercial is a leading commercial real estate franchise brand under parent company Realogy Holdings Corp., offering franchise opportunities since 1998.
The brand supports independent brokerages focused on commercial property sales, leasing, investment, and advisory services.
Coldwell Banker Commercial offices serve clients across the office, retail, industrial, multifamily, and land sectors.
Coldwell Banker Commercial Franchise Cost & Fees
Minimum Investment
$117K
Average Investment
$420K
Maximum Investment
$724K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 for the first office and $5,000 for each additional office | One-time payment upon signing |
| Royalty Fee | 6% of the aggregate Gross Revenue for all your offices up to $1,000,000 per calendar year and 3% of the aggregate Gross Revenue in excess of $1,000,000 per calendar year of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenue monthly with a minimum of $582 and a maximum of $1,614 per office, per month as of January 1, 2022 | National brand fund |
| Total Investment Range | $117,000 – $723,500 | Includes build-out, inventory, working capital |
The investment range of $117K–$724K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of the aggregate Gross Revenue for all your offices up to $1,000,000 per calendar year and 3% of the aggregate Gross Revenue in excess of $1,000,000 per calendar year) and marketing fee (2% of Gross Revenue monthly with a minimum of $582 and a maximum of $1,614 per office, per month as of January 1, 2022) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $0 | $20,000 |
| Real Estate | $0 | $0 |
| Leasehold Improvements | $0 | $400,000 |
| Office identity signs | $700 | $20,000 |
| Property signs | $8,000 | $20,000 |
| Printed materials | $1,500 | $3,000 |
| Orientation | $800 | $2,700 |
| Legal Expenses | $0 | $4,000 |
| Insurance | $1,500 | $11,500 |
| Advertising (local)/Grand Opening promotion | $3,000 | $5,000 |
| Computer Equipment and Electronic Data System | $5,000 | $10,000 |
| Facility and space planning | $9,000 | $17,500 |
| Furnishings and Communications equipment | $27,000 | $87,500 |
| Security and other deposits | $7,500 | $17,700 |
| Prepaid business expenses | $3,000 | $4,600 |
| Additional funds (3 months) | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Technology Fee | $1,000 to $2,000 or more per year (estimated for computer hardware and software maintenance and support) |
| Audit Fee | $450 per day (if audit exposes a deficiency of 5% or more or other conditions are met) |
| Minimum Standard Fees | If Royalty Fees paid each quarter are less than $7,500, difference between Royalty Fees paid and $7,500 |
| Minimum Annual Royalty Fees | Will vary |
| Holding Over – Royalty Fee | Twice the Royalty Fee otherwise due |
| Commercial Property Management Fees | 1.5% of Gross Revenues from Commercial Property Management Services |
| Liquidated Damages | Equal to the combined monthly average of Royalty Fees, BMF contributions, and any other fees... multiplied by the lesser of (i) 36 or (ii) the number of full months remaining in the Term. |
| Late Charges and Interest | Highest legal rate (not to exceed 1.5% per month) plus the highest allowable legal late charge |
| Testing/Inspection Fees to Approve Supplier | See remarks (currently not charged, but right to charge reasonable fees) |
| Other Educational Fees and Expenses | See remarks (course fees, travel, lodging, meals, etc.) |
| Special Assistance | As negotiated |
| Global Conference Fee | $449-$549 per registrant |
| Costs and Attorney Fees | Will vary |
| Indemnification | Will vary |
| Taxes | Will vary |
| Relocation/Improvement Fees | Will vary |
| Insurance | Cost of insurance |
| Product/Service Fees | Will vary |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Mandatory Orientation program (15 classroom hours) is available generally within the first year after opening. Optional learning programs, courses, seminars, or conferences are also offered. |
| Classroom Training | 15 hours (for mandatory Orientation program) |
| On-the-Job Training | 0 |
| Training Location | Franchisee location, near our Headquarters in New Jersey, or virtually offered (for Orientation) |
| Additional Training | Ongoing education courses, seminars, or conferences are offered at the corporate office, online, in your area, or elsewhere. Attendance is voluntary, and franchisees pay course fees and travel expenses. |
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 distribution channels/competitive brands controlled by the franchisor. Franchisees must operate only from approved office locations. The franchisor and its affiliates retain the right to operate or license other real estate brokerage businesses anywhere, including in immediate proximity to a franchisee's office. No minimum area of protection is granted, though limited protected areas may be granted in writing based on local market conditions, subject to termination if performance levels are not met. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | No renewal rights |
| Renewal Conditions | No renewal rights. If an additional term is granted, the franchisee may be required to sign the then-current Franchise Agreement or a Term Extension Addendum with potentially materially different terms. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Conditions for transfer approval include: current compliance with the Franchise Agreement, transferee meeting new franchisee standards (licensed real estate broker, adequate management), transferee agreeing to current or new franchise agreement and signing a personal guaranty, payment of a $5,000 transfer fee, signing of a general release by the transferor, payment/assumption of outstanding indebtedness, an audit of operations, and purchase of tail coverage on errors and omissions insurance. |
| Termination for Cause | The franchisor can terminate for good cause, which includes material breaches, curable defaults (e.g., failure to pay fees, unauthorized transfer, non-compliance with laws, failure to open on time, creating security interest without consent, or other material breaches, with 30 days to cure), and noncurable defaults (e.g., Responsible Broker's license suspension/revocation, conduct impairing Marks/System goodwill, insolvency/bankruptcy, repeated defaults, material misrepresentation, operating a competing residential brokerage, or abandonment of office, with immediate termination). |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term, the franchisee, its Owners, officers, guarantors, and Responsible Broker cannot engage in any other real estate brokerage business (except authorized Real Estate Related Excluded Businesses) without prior written consent. After a transfer of the franchise, for 24 months (or the remaining term, whichever is less), the transferor, its Owners, officers, guarantors, and their spouses cannot operate, own, license, franchise, be employed by, or consult with any commercial real estate brokerage within a two (2) mile radius of any office operating at the date of transfer. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The individual franchisee (sole proprietor) or the Owners (if an entity) must participate in the management and supervision of the Franchise. The Owners, commercial manager, and Responsible Broker are expected to exercise continuous best efforts to maintain, develop, and promote the Franchise. Each equity interest holder, and potentially their spouse, must sign a Guaranty of Payment and Performance, making them jointly and severally liable for all franchise obligations. |
| Required Suppliers | Franchisees must purchase building signs, yard signs, stationery, business cards and other Coldwell Banker Commercial® trademark-bearing items that meet mandatory standards and specifications from Approved Suppliers, unless prior written permission is obtained to use another 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. A supplier's approved status can be revoked if they no longer meet criteria, breach their agreement, or if products/services are not competitive in price or quality. |
| Franchisor Revenue from Suppliers | The franchisor and its affiliates have the right to receive fees, payments, rebates, commissions, or other consideration (generally 0% to 5% of the price) from Approved Suppliers, Strategic Alliance Program vendors, or other vendors for required purchases. In 2021, gross revenue of $1,736,929 (0.02% of total Realogy Group revenue) was from required purchases or leases by franchisees of the Real Estate Affiliates and the franchisor. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor or a related company may offer financing, primarily through Conversion Promissory Notes (CPNs) and Expansion Promissory Notes. CPNs assist with conversion or opening costs, offering an annual opportunity for principal forgiveness based on Gross Revenue thresholds, with a 9-year maturity. Expansion Notes are interest-bearing, offered to existing franchisees for acquisition or business expenses, and must be repaid 6 months prior to the agreement's expiration. Both require personal guarantees from all equity interest holders and their spouses, and a security agreement for business assets. Default on any note or the franchise agreement accelerates all payments and may lead to franchise termination. The franchisor reserves the right to sell or assign notes but has no current plans to do so. |
Coldwell Banker Commercial Franchise Earnings — Item 19
Coldwell Banker Commercial 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.
Coldwell Banker Commercial 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.
Coldwell Banker Commercial Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Coldwell Banker Commercial System Growth
Total Units
126
Franchised
123
Company-Owned
3
Coldwell Banker Commercial currently operates 123 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 11 | 13 | 127 |
| 2020 | 5 | 6 | 126 |
| 2021 | 7 | 7 | 126 |
Transfers: 1 | Closures: 7
State Registrations
Registered in 14 states: HI, MI, MN, SD, WA, WI, CA, IL, IN, MD, NY, ND, RI, VA
Coldwell Banker Commercial Franchise — FAQ
The total investment to open a Coldwell Banker Commercial franchise ranges from $117,000 to $723,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $20,000 for the first office and $5,000 for each additional office. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Coldwell Banker Commercial charges a royalty fee of 6% of the aggregate Gross Revenue for all your offices up to $1,000,000 per calendar year and 3% of the aggregate Gross Revenue in excess of $1,000,000 per calendar year of gross sales, plus a 2% of Gross Revenue monthly with a minimum of $582 and a maximum of $1,614 per office, per month as of January 1, 2022 contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Coldwell Banker Commercial 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 Coldwell Banker Commercial to ensure you have the most up-to-date version.
Coldwell Banker Commercial 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.
Coldwell Banker Commercial has been franchising since 1998. The FDD shows an investment range of $117,000-$723,500, a 6% of the aggregate Gross Revenue for all your offices up to $1,000,000 per calendar year and 3% of the aggregate Gross Revenue in excess of $1,000,000 per calendar year royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $20,000 for the first office and $5,000 for each additional office and the total investment ranges from $117,000 to $723,500 depending on location size and market. A minimum of $50,000 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 Coldwell Banker Commercial and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Coldwell Banker Commercial or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com