United Country Real Estate Franchise Costs $10K – $45K (+ 2024 Profits)
United Country Real Estate, founded in 1925, has established itself as a significant force in real estate marketing, specializing in properties located in rural and lifestyle areas. Headquartered in Kansas City, Missouri, United Country is notable for being the largest organization focusing on small cities and towns across America.
It started franchising in 1925, the same year it was founded, showing a strong commitment to growing its unique market niche from the outset. United Country stands out in the real estate industry by offering the largest private inventory of land, country, and lifestyle properties for sale.
This includes an extensive selection of properties not only in the United States but also in international markets such as Canada, Mexico, and Australia. Their specialization in rural real estate differentiates them from other real estate companies that are often more urban-centric.
Initial investment
Here’s what you can expect to spend to start a United Country Real Estate franchise.
Type of Expenditure | New Office Amount |
---|---|
Franchise Fee | $20,000 |
Travel Costs for Initial Training | $50 – $1,300 |
Personal Costs at Training | $75 – $575 |
Initial Affiliation Fee | $0 – $30 |
Real Property/Lease Hold Expenses | $0 – $1,500 |
Improvements, Fixtures and Equipment | $2,700 – $5,375 |
Initial Deposits and Service Payments | $1,950 – $2,200 |
Computer System | $800 – $1,000 |
Signs, Stationery and Supplies | $0 – $2,700 |
Broker Exam and License Fees | $75 – $200 |
Additional Funds (1st 3 months) | $4,500 – $10,000 |
Total | $30,150 – $44,880 |
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
The initial franchise fee for the United Country franchise is $20,000. This fee is fully earned, non-refundable, and payable in cash no later than the date of the Franchisee’s execution of the Franchise Agreement. If a Franchisee decides to sign an additional second Franchise Agreement, the initial fee for this would be $15,000. For a third or more Broker Office with the Franchisee, the fee may be reduced to $10,000 per each additional Franchise Agreement, at UC’s discretion.
Royalty Fee
the flat rate royalty percentages do range from 6% to 12% depending on the gross commissions for the applicable preceding period. Here are the specific percentages based on gross commissions:
- $3,000,000 and up: 6%
- $2,000,000 – $2,999,999: 7%
- $1,500,000 – $1,999,999: 8%
- $1,000,000 – $1,499,999: 9%
- $500,000 – $999,999: 10%
- $200,000 – $499,999: 11%
- $0 – $199,999: 12%
Marketing/Advertising Fee
The Marketing/Advertising Fee for United Country Real Estate is structured around the following elements:
- Advertising Fees: There are no required contributions to a national, regional, or local advertising fund by the franchisees. However, franchisees must purchase identifying signs and certain advertising and related promotional materials developed by the franchisor.
- Initial Supplies: Upon payment of the standard franchise fee, initial supplies of these advertising items are provided. For mobile franchises purchased at a discounted initial franchise fee, these items are available for purchase.
- Sign Credit: A sign credit of $1,000 ($500 for mobile franchises) is provided under the “45-day Program Evaluation and Engagement Incentives” if the Franchise Agreement is signed and the franchise fee is paid within 45 days of receipt of a Franchise Disclosure Document.
Technology Fee
Two options for the technology fee are available:
- Option 1: $400 per month.
- Option 2: $200 per transaction, capped after the first 24 transactions on a yearly basis.
Transfer Fees
The transfer fee is $5,000, non-refundable, required for most transfers of a Franchise Agreement. Discounts apply under certain conditions such as for mobile franchises or if the new manager has already received training.
Franchise pros and cons
The Pros:
- Marketing and branding support: United Country Real Estate has an extensive and technology-backed marketing system to help franchise owners with service awareness creation and lead generation. Franchisees get access to exclusive direct, digital, print, and social media advertising at the national and local levels.
- Extensive training: The franchisor has invested in comprehensive online and classroom training programs to help franchisees train their agents and brokers on the best market practices. It trains them on its concept sales, tools, and technology and supports them in developing and growing their offices smoothly through ongoing franchise reviews and annual conventions.
- Mobile-based investment: The franchise can be run from home or a vehicle. Franchisees can get started fast, which saves them the hassle of development and real estate requirements.
- Low overhead and ongoing costs: A United Country Real Estate franchise requires little equipment and inventory to launch and operate. Franchisees can operate with low overhead, improving their margins.
- Technology advantage: The franchisor has developed a leading real estate website with more than 3,500 top-performing websites and more than 3 million visitors, which offers nationwide exposure for agent listings.
The cons:
- No exclusive territory protection: The franchisor does not allow its franchisees to operate their offices in an exclusive territory. Franchisees may face competition from other franchises authorized by the parent company or related businesses it controls.
- Not a part-time business: The franchisor requires franchises to have their offices open full-time as per the parent company’s working hours.
- Not a passive investment: The franchisor does not allow for absentee ownership. Franchisees are required to participate in the decision-making and operations of their offices.
How to open a United Country Real Estate franchise
Opening a United Country Real Estate franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a United Country Real Estate franchise.
1: Initial Research and Inquiry
- Understand the Business: Learn about United Country Real Estate’s specialization in rural and lifestyle properties and their market presence.
- Contact United Country: Reach out through their official website to express interest and request more detailed franchising information.
2: Application Process
- Submit an Application: Complete the franchise application form provided by United Country Real Estate to start the formal evaluation process.
- Initial Discussions: Engage in discussions with United Country representatives to understand the requirements and expectations. This may include webinars or phone calls.
3: Review Franchise Disclosure Document (FDD)
- Receive and Review FDD: Obtain and carefully study the Franchise Disclosure Document, which contains detailed information about the franchise costs, obligations, and the support provided.
- Consult with Professionals: It is advisable to consult with a franchise attorney and a financial advisor to ensure you understand all aspects of the franchise agreement.
4: Financial Planning and Approval
- Secure Financing: Determine your financing strategy to cover the initial franchise fee and other startup costs. United Country Real Estate may offer financing options or assistance in obtaining financing.
- Approval Process: Once your financial and background checks are approved, finalize your franchise agreement with United Country Real Estate.
5: Training and Setup
- Undergo Training: Participate in United Country’s comprehensive training program, which covers all aspects of rural real estate sales, marketing, and operations.
- Establish Your Office: With guidance from United Country, choose a suitable location for your franchise and set up your office in line with their branding and operational standards.
Disclaimer
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