Sotheby'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.

The 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.

Sotheby'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.

No, the Sotheby's International Realty franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Sotheby'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.

Sotheby'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%.

The 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.

Sotheby'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.

The initial franchise agreement term for Sotheby's International Realty is 10 years (2025 FDD). The total potential term is 10 years.

Sotheby's International Realty's post-termination non-compete clause lasts 1 year after termination or expiration (2025 FDD).

No, Sotheby's International Realty's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation.

Sotheby'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.

Sotheby'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.