Century 21 is an international real estate franchise operator. They provide branding and business support to individually owned real estate brokerages across the globe. Claiming to have more brand awareness than any real estate label, Century 21 say their mission is to reinvent the industry by capturing the hearts and minds of those who are buying, selling and working in real estate today.
Established in 1971, and offering franchise opportunities since 1972, Century 21’s head office is located in Madison, New Jersey. They are the largest real estate franchisors in the world and are part of a group of real estate agencies that includes Coldwell Banker, Sotheby’s International and Better Homes and Garden Real Estate. Currently, Century 21 has over 12,000 franchised offices worldwide and operates in 86 countries.
Century 21 at a glance:
Century 21 states that they are seeking franchisees who are keen go-getters, determined to defy mediocrity and deliver extraordinary experiences in the real estate industry. If this is you, and you have a net worth of at least $150,000, and liquid assets of more than $75,000, this opportunity may be of interest. However, for those seeking a passive investment, take note that a Century 21 franchise cannot be operated as a remote or semi-remote investment. The company demands that their franchisees are actively engaged in the day to day running of the office and you will be expected to grow a positive and helpful presence for the brand and your business within the local community.
Century 21 offers two basic franchise models and the costs involved can vary from the very low to the moderate. Be aware that Century 21 franchises for real estate sales offices in Canada are typically limited to owners of existing real estate businesses but, in certain situations, they may be offered to newly formed real estate brokerages. If you are converting an existing real estate brokerage business into a Century 21 franchise and your premises meet the minimum office requirements (1,800 to 3,500 square feet) your set-up expenses could vary from $25,000 up to $270,000. However, these costs will increase significantly if you are opening a brand new Century 21 franchise – expect to pay anywhere from $100,000 to $450,000 or more.
Century 21 charges a franchise fee of $25,000 but this may be waived for businesses that participate in Century 21’s diversity or veteran program.
After opening, you are required to pay an array of ongoing fees and charges. They include:
| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $0 | $25,000 |
| Leasehold improvements | $100 | $100,000 |
| Technology – hardware and software | $5,000 | $10,000 |
| Exterior signage | $1,000 | $20,000 |
| Sale and yard signs | $2,000 | $5,000 |
| Opening advertising | $0 | $10,000 |
| Legal expenses | $0 | $4,000 |
| MLS | $0 | $3,000 |
| Other costs – three months | $15,000 | $40,000 |
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They can be, but the Canadian real estate market is mature and extremely competitive. Your office location, the performance of your agents, and the general strength of the real estate market in your area will determine how successful and profitable your franchise is. Note that prior to the COVID-19 pandemic, Century 21 group posted a net loss of $360million in 2020 and net income had been falling for at least two years before that. As a franchisor that derives a large proportion of their income from individual franchise revenues, the drop in income for the parent organization may indicate performance weakness at the local office level.
Moderate to high. The Century 21 franchise failure rate as of 2020 (most recent data) was 9.4%.
People always need somewhere to live. Although real estate can go through up and down cycles, a growing Canadian population ensures that there will always be people looking for a home or commercial premises to buy. Century 21 offers franchisees the resources of a national network and the brand awareness of a major name for a relatively low investment. Yes, the success of your franchise will depend on where you operate and how active your market is, but favorable demographics and the unending urge of folks to own a home means you’ll never be short of customers.
Franchisees must operate their franchised business only from the office(s) identified in their franchise agreement. The company will not grant another Century 21 franchisee a location within a 1/4-mile radius from the franchisee’s office(s), but no franchisee is prohibited from seeking listings or buyers in any area. The franchisor’s holding company, may offer franchises to real estate brokerages that operate under their other brand names in your designated territory.
Century 21 support for franchisees includes:
It starts with an application. Begin the process today.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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