About The Agency Franchise
The Agency is a luxury real estate brokerage franchise offering the right to operate under The Agency brand and system.
Backed by RealTech Holdings, Inc.
and franchising since 2015, the brand has established itself as a premium name in residential and commercial real estate, known for its sophisticated marketing, modern technology platform, and high end client service.
The Agency Franchise Cost & Fees
Minimum Investment
$118K
Average Investment
$368K
Maximum Investment
$618K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue up to and including $5,000,000 of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1.25% of Gross Revenue up to and including $5,000,000; 1% of Gross Revenue from $5,000,000.01 to $10,000,000; .75% of Gross Revenue above $10,000,000.01 | National brand fund |
| Total Investment Range | $117,600 – $617,650 | Includes build-out, inventory, working capital |
The investment range of $118K–$618K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue up to and including $5,000,000) and marketing fee (1.25% of Gross Revenue up to and including $5,000,000; 1% of Gross Revenue from $5,000,000.01 to $10,000,000; .75% of Gross Revenue above $10,000,000.01) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (See Note 1) | $45,000 | $45,000 |
| The Agency Orientation, Sales and Marketing Training | $0 | $1,200 |
| Office Space Signage | $10,000 | $15,000 |
| For Sale Signs/Open House Signs | $15,000 | $20,000 |
| Stationery, Office Supplies and Equipment | $7,500 | $10,000 |
| Grand Opening Marketing and Promotions | $5,000 | $10,000 |
| Salesperson Commissions | $0 | $0 |
| Approved Computer Hardware (See Note 2) | $0 | $30,000 |
| Approved Computer Software and Support Services (See Note 2) | $5,000 | $7,500 |
| High Speed Internet Connection (See Note 2) | $100 | $1,500 |
| Real Property, whether Purchased or Leased (See Note 3) | $0 | $240,450 |
| Furniture, Fixtures & Equipment (See Note 4) | $1,000 | $95,000 |
| Business Insurance (See Note 5) | $17,000 | $44,000 |
| Additional Funds – 3 Months (See Note 6) | $11,500 | $98,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | null |
| Technology Fee | Included in Marketing/Technologies Fee |
| Audit Fee | All costs we incur in connection with an audit, plus any understatement of Gross Revenue |
| Minimum Royalty | Will vary |
| Referral Fee | 25% |
| The Agency Global Forum Fee | Currently $0 (not to exceed $1,000 per person; does not include your actual out-of-pocket attendance costs) |
| Local Post-Opening Support and Training and Other Additional Assistance | Our then-current training fee, which will vary based on circumstances (not to exceed $1,000 per person per day, plus our travel and living expenses, if at our location or your Office) |
| Late Fee | $500, plus 10% per annum or the highest rate permitted by law, whichever is lower, on the balance of the late payment |
| Product and Service Fees and Costs | Will vary (amounts set forth in our Operations Manual, and depend on the nature and extent of optional products and services you request) |
| Insurance Reimbursement | Our premiums, costs and expenses |
| Indemnification | Will vary based on circumstances |
| Attorneys’ Fees | Will vary based on circumstances |
| Liquidated Damages | Equal to the greater of Minimum Royalty or average monthly Royalty Fees for the 12 preceding months, multiplied by 36 or the number of months remaining in the Franchise Agreement's term, whichever is less. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 9-week period prior to the Office’s scheduled opening date, to be completed at least one week before opening. |
| Classroom Training | 16 to 16.25 |
| On-the-Job Training | 0 |
| Training Location | Via video conferencing or at our corporate office in Beverly Hills, California |
| Additional Training | Ongoing, refresher, and advanced training is required, delivered via AgencyConnect, virtual platforms, or at The Agency Global Forum. Franchisees are responsible for course fees and travel/lodging costs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive, Protected (for physical location of other real estate brokerage offices using the Marks) |
| Exclusive Territory | No |
| Territory Size | Approximately 100,000 population for one Office |
| Description | The Franchise Agreement defines a geographic "Territory" based on real estate transaction history, number of offices committed, population, market potential, and neighborhood character. The franchisor will not locate or authorize another franchisee/licensee to locate a real estate brokerage office using the Marks within the Territory, with exceptions for new development projects. The Territory is not exclusive, and the franchisor and its affiliates retain all rights to conduct business and use the Marks inside or outside the Territory, including through other distribution channels like the Internet or telemarketing, without compensation to the franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 2 options to renew for 5 years each |
| Renewal Fee | null |
| Renewal Conditions | Franchisee must give 9 months’ notice, be in good standing, provide a general release (if state law allows), update the Office to current requirements, sign the then-current franchise agreement (which may have different terms, including fees), and not have received 3 or more default notices in any 24-month period. |
| Transfer Fee | $5,000 |
| Transfer Conditions | New franchisee must qualify, transfer fee paid, purchase agreement approved, and current franchise agreement signed by new franchisee. Franchisor has the right to approve all transfers but cannot unreasonably withhold approval, except for special cases. |
| Termination for Cause | Franchisor can terminate the Franchise Agreement, Office Addendum, and Limited Purpose Office Addenda if the franchisee defaults. Defaults include failure to open on time, abandonment, insolvency, inaccurate reporting of Gross Revenue, unauthorized transfer of Marks, real estate license suspension/revocation, repeated defaults, failure to permit audits, violation of Marks provisions, violation of trust account rules, false application information, no active listings, or material violation of laws. |
| Non-Compete Period | During the term of the franchise |
| Non-Compete Details | During the term of the Agreement, the franchisee may not engage in any Real Estate Activities except in connection with the Franchised Business without prior written consent. Related real estate activities are permitted if the franchisor is given written notice, activities are conducted through a separate legal entity with distinct trademarks, and clients are referred to the Office for brokerage services. Franchisor has imposed no post-term non-compete restrictions. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisor does not obligate the franchisee or its principals to participate in the actual operation of the Office. However, a supervising real estate broker (managing broker) must be appointed, licensed, successfully complete the franchisor's background check and training program, and maintain confidentiality and trade secrets. |
| Required Suppliers | All franchisees are required to use proprietary software for managing and operating real estate activities, purchased from approved suppliers. The proprietary intranet system, AgencyConnect, is an exclusive supplier. PIC Consulting is an approved supplier for certain Office construction and development services. |
| Supply Restrictions | System standards may impose minimum requirements on goods, services, and suppliers. The franchisor reserves the right to designate future suppliers for certain products and services. All computer hardware and software must meet minimum specifications. Marketing materials, website, stationery, and business cards must comply with Operations Manual standards. The franchisor may approve or disapprove alternative suppliers in its sole judgment and may revoke approval at any time. Criteria for approval are not made available, and franchisees are not permitted to contract with unapproved suppliers. |
| Franchisor Revenue from Suppliers | As of the disclosure document date, the franchisor does not derive revenue or other material consideration from required purchases or leases by franchisees. No officer of TAREF owns an interest in any required, recommended, or approved supplier, other than RULC and UMRO. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or any other obligation. |
The Agency Franchise Earnings — Item 19
The Agency 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.
The Agency 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.
The Agency Litigation & Risk Flags
2 Pending Actions 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.
The Agency System Growth
Total Units
39
Franchised
11
Company-Owned
28
The Agency currently operates 11 franchised locations and 28 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 9 | 5 | 27 |
| 2020 | 8 | 4 | 31 |
| 2021 | 9 | 1 | 39 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$2.0M
Net Income
$-29,266
Total Assets
$2.7M
Audited by HCVT for year ending December 31.
The Agency Franchise — FAQ
The total investment to open a The Agency franchise ranges from $117,600 to $617,650, per their Franchise Disclosure Document. This includes the initial franchise fee of $45,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Agency charges a royalty fee of 6% of Gross Revenue up to and including $5,000,000 of gross sales, plus a 1.25% of Gross Revenue up to and including $5,000,000; 1% of Gross Revenue from $5,000,000.01 to $10,000,000; .75% of Gross Revenue above $10,000,000.01 contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Agency 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 The Agency to ensure you have the most up-to-date version.
The Agency 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.
The Agency has been franchising since 2015. The FDD shows an investment range of $117,600-$617,650, a 6% of Gross Revenue up to and including $5,000,000 royalty, and no Item 19 earnings disclosure. There are 2 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 $45,000 and the total investment ranges from $117,600 to $617,650 depending on location size and market. 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 The Agency and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Agency or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com