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Realty ONE Group

Realty One Group Inc.

Company Information

23811 Aliso Creek Road, Suite 168 Laguna Niguel, California 92677

[email protected]

Our franchise is a license to independently own and operate an office (“Outlet”) providing fullservice residential and commercial real estate brokerage services and related services (collectively, “Realty ONE Group Services”) to retail customers strictly in accordance with our methods and format (which we can periodically change), using our designated technology and techniques. Your initial Outlet will be your principal real estate brokerage office. With our written consent, you may also open (under separate Franchise Agreements) other real estate offices as additional Outlets. Under a separate franchise disclosure document, we offer Regional Director Franchises granting the Regional Director the rights within a defined “Regional Territory” to (i) offer and sell Realty ONE Group Affiliates Unit Franchises using the form of Franchise Agreement that we provide them, (ii) provide ongoing (and in some cases initial) training and assistance to Unit Franchises in the Regional Territory, (iii) represent our interests in communicating and assisting in implementing the Realty ONE Group model, system, program and policies (including compliance visits) with Unit Franchises and (iv) build the Realty ONE Group Brand in the Regional Territory. An entity affiliated with a Realty ONE Group Regional Director may also own or have owned a Unit Franchise. There are currently 12 Regional Territories in the United States (1 in Arizona, 5 in California, 1 in Colorado, 1 in Iowa, 1 in New Jersey, 1 in Pennsylvania, 1 in Texas and 1 in Utah), and 1 Regional Territory in Canada. If your Franchise is in a Regional Territory licensed to a Regional Director, we will provide you with the contact information about the Regional Director operating in the territory where your franchise will be located (you will be entering into a Franchise Agreement with us and the Regional Director will not be a party to this agreement).

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

5/10

Investment Accessibility

5/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Realty ONE Group Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $19,000 Maximum: $25,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $47,250 Maximum: $227,500

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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