About The Agency (New Development Offices) Franchise
The Agency is a luxury real estate brokerage franchise known for its sleek branding, high profile property listings, and celebrity clientele.
This particular offering focuses on New Development Offices, which specialize in marketing and selling newly constructed residential projects.
The brand has been franchising since 2015 under The Agency Holdco, Inc.
The Agency (New Development Offices) Franchise Cost & Fees
Minimum Investment
$436K
Average Investment
$608K
Maximum Investment
$779K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $400,000 | One-time payment upon signing |
| Royalty Fee | 3% of Gross Revenue during the first 12-months, then 4% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Not applicable | National brand fund |
| Total Investment Range | $436,100 – $779,000 | Includes build-out, inventory, working capital |
The investment range of $436K–$779K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (3% of Gross Revenue during the first 12-months, then 4% of Gross Revenue) and marketing fee (Not applicable) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $400,000 | $400,000 |
| Approved Computer Hardware | $0 | $30,000 |
| Approved Computer Software and Support Services | $5,000 | $7,500 |
| High Speed Internet Connection | $100 | $1,500 |
| Real Property, whether Purchased or Leased | $0 | $100,000 |
| Furniture, Fixtures & Equipment | $1,000 | $95,000 |
| Business Insurance | $15,000 | $45,000 |
| Additional Funds – 3 Months | $15,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 and reimbursement of our costs and expenses |
| Renewal Fee | $200,000 |
| Technology Fee | Not applicable |
| Audit Fee | All costs we incur in connection with an audit, plus any understatement of Gross Revenue |
| The Agency Global Forum Fee | Currently $0 (not to exceed $1,000 per person; does not include your actual out-of-pocket attendance costs) |
| Optional Training | Our then-current training fee, which will vary based on circumstances |
| Late Fee | $25,000, 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 | $250,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 8.5 hours |
| Classroom Training | 8.5 hours |
| On-the-Job Training | 0 hours |
| Training Location | Via video conferencing or at the corporate office in Beverly Hills, California |
| Additional Training | The franchisor provides optional ongoing, refresher, and advanced training, which may be required. This training can be delivered via the Intranet or other virtual, instructor-led platforms, and at The Agency Global Forum or other periodic events. Franchisees are responsible for all costs of enrollment and travel for these additional training offerings. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | United States |
| Description | The franchisee will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands controlled by the franchisor. The franchisor and its affiliates reserve all rights to locate or authorize other real estate brokerage offices within the Territory, including those with rights of first refusal to establish New Development Offices. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 2 years |
| Renewal Term | 5 consecutive options for 2 years each |
| Renewal Fee | $200,000 |
| Renewal Conditions | Franchisee must give 9 months' notice, be in good standing, provide a general release (if state law allows), update the Offices, sign the then-current franchise agreement (which may be materially different), pay the annual $200,000 renewal fee, and not have been in default 3 or more times during any 24-month period. All sub-franchise agreements must also be in good standing with System requirements. |
| Transfer Fee | $5,000 and reimbursement of franchisor's costs and expenses |
| Transfer Conditions | New franchisee must qualify, transfer fee must be paid, purchase agreement approved, and a current franchise agreement signed by the new franchisee. |
| Termination for Cause | The franchisor can terminate the Franchise Agreement and any Office Addendum(s) if the franchisee defaults and fails to cure. The franchisor may also exercise alternative remedies instead of termination. |
| Non-Compete Period | During the term of the franchise |
| Non-Compete Details | During the term of the franchise, the franchisee must not engage in any other real estate activities except in connection with the franchised offices (subject to state law). The franchisor has imposed no post-term non-compete restrictions, allowing the franchisee to engage in real estate activities after expiration or termination, provided they do not use the franchisor's System, Marks, or confusingly similar trademarks. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisor does not obligate the franchisee or its principals to participate in the actual operation of the offices. However, a supervising real estate broker or managing broker must be appointed to supervise the offices, complete a background check, and potentially complete training. Certain restrictions consistent with the Operations Manual must be placed on the managing broker, including maintaining confidentiality and trade secrets. |
| Required Suppliers | Franchisee and its salespersons, agents and staff are required to use approved software for managing and operating all Real Estate Activities. The franchisor is the exclusive supplier of its proprietary intranet system (the “Intranet”). |
| Supply Restrictions | All goods, services, supplies, fixtures, equipment, and inventory that you purchase or lease must meet our brand standards. The franchisor reserves the right to designate suppliers for certain products and services in the future. |
| Franchisor Revenue from Suppliers | As of the date of this disclosure document, the franchisor does not derive revenue or other material consideration from required purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing, nor does it guarantee your note, lease, or any other obligation. |
The Agency (New Development Offices) Franchise Earnings — Item 19
The Agency (New Development Offices) 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 (New Development Offices) 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 (New Development Offices) 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.
The Agency (New Development Offices) System Growth
Total Units
77
Franchised
42
Company-Owned
35
The Agency (New Development Offices) currently operates 42 franchised locations and 35 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 7 | 0 | 11 |
| 2022 | 12 | 2 | 21 |
| 2023 | 22 | 1 | 42 |
Transfers: 0 | Closures: 3
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
$5.1M
Net Income
$1.1M
Total Assets
$7.9M
Audited by AHCVT for year ending December 31.
The Agency (New Development Offices) Franchise — FAQ
The total investment to open a The Agency (New Development Offices) franchise ranges from $436,100 to $779,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $400,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Agency (New Development Offices) charges a royalty fee of 3% of Gross Revenue during the first 12-months, then 4% of Gross Revenue of gross sales, plus a Not applicable contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Agency (New Development Offices) 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 (New Development Offices) to ensure you have the most up-to-date version.
The Agency (New Development Offices) 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 (New Development Offices) has been franchising since 2015. The FDD shows an investment range of $436,100-$779,000, a 3% of Gross Revenue during the first 12-months, then 4% of Gross Revenue 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 $400,000 and the total investment ranges from $436,100 to $779,000 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 (New Development Offices) 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 (New Development Offices) or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com