17 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
The total initial investment to open a Sotheby's International Realty franchise ranges from $46K to $512K (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Sotheby's International Realty is $25K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Sotheby's International Realty 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
Sotheby's International Realty requires prospective franchisees to have a minimum net worth of $150K and $75K in liquid capital (2025 FDD). A personal guarantee is also required.
View full investment analysisNo, Sotheby's International Realty does not require franchisees to have dedicated real estate (2025 FDD). This can significantly reduce startup costs and ongoing overhead.
View full investment analysisSotheby's International Realty charges a royalty fee of 6.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Sotheby's International Realty franchise is approximately 8.0% of gross sales (2025 FDD). This includes the royalty fee, a 2.0% marketing/advertising fund contribution, and other recurring charges.
View full fees analysisSotheby's International Realty has been involved in 5 litigation cases over the past 3 years (2025 FDD). There are currently 5 pending cases. There is at least one class action lawsuit pending.
View full litigation analysisNo, the Sotheby's International Realty franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisSotheby's International Realty offers non-exclusive territory rights to its franchisees (2025 FDD). The franchise agreement does not include encroachment protection. Franchisees retain online sales rights for their territory.
View full territory analysisSotheby's International Realty currently operates 710 locations (2025 FDD) (666 franchised, 44 company-owned). The system contracted by 1.1% over the past year. The 3-year compound annual growth rate is 0.1%.
View full growth analysisThe 1-year franchisee turnover rate for Sotheby's International Realty is 3.7% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisSotheby's International Realty does not include an Item 19 financial performance representation in their FDD (2025 FDD). This means the franchisor has chosen not to disclose revenue, profit, or other financial figures in the Franchise Disclosure Document.
View full financials analysisThe initial franchise agreement term for Sotheby's International Realty is 10 years (2025 FDD). The total potential term is 10 years.
View full contract analysisSotheby's International Realty's post-termination non-compete clause lasts 1 year after termination or expiration (2025 FDD).
View full legal analysisNo, Sotheby's International Realty's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation.
View full legal analysisSotheby's International Realty provides 15 hours of initial training (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.
View full support analysisSotheby's International Realty does not provide site selection assistance (2025 FDD). Franchisees are responsible for finding and securing their own location. The franchisor also provides technology support and systems.
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