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Realty World

Company Information

1101 Dove Street, Suite 228

[email protected]

Realty World®, Inc. was incorporated on June 12, 1997 in Nevada under the name AC Capital, Inc. They changed their name to Realty World®, America, Inc. on September 11, 1997. On March 31, 2006, they changed their name to Realty World®, Inc. Their principal business address is 1101 Dove Street, Suite 228, Newport Beach, California 92660.

We have developed a network of real estate brokerage businesses known as “Realty World®” businesses (“Realty World® Businesses”). We use, promote, and license certain trademarks, service marks, and other commercial symbols in operating Realty World® Businesses, and may create, use and license other trademarks, service marks, and commercials for Realty World® Businesses (the “Marks”). Realty World® Businesses offer the products and services we authorize and use our business formats, methods, rules, procedures, signs, designs, layouts, standards, specifications, and Marks (the “Franchise System”). We offer to qualified persons the right to operate a Realty World® Business (a “Business”) under the form of franchise agreement attached as Exhibit B (the “Franchise Agreement”). We do not typically grant an exclusive territory. Under limited circumstances, however, we may offer you the right to acquire a franchise with an exclusive territory (excluding commercial real estate and new home developments) under our form of exclusive territory addendum attached as Exhibit B-1 (the “Exclusive Territory Addendum”). If you acquire a Realty World® franchise, you must operate the Realty World® Business in accordance with our specifications and standards for the Marks and the Franchise System. From August 2009 to August 2012, we granted persons or entities meeting our qualifications (“Area Developers”) the right to develop multiple Realty World® Businesses utilizing the marks within a development area. We are no longer offering franchises for Area Developer franchises. As of the date of this disclosure document, there are no Area Developers in existence. However, we may offer franchises for Area Developer franchises in the future. Except as described above, we have no other business activities.

1 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

4/10

Earning Transparency

1/10

Investment Accessibility

6/10

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 World Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $18,000 Maximum: $18,000

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: $60,000 Maximum: $195,000

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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