Sotheby's International Realty

  • SOTHEBY'S INTERNATIONAL REALTY AFFILIATES LLC
102 Kercheval Ave.
Grosse Pointe, MI 48236
  • (866) 899-4747 / (973) 407-8010

Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby's International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. In February 2004, Realogy Corporation (then Cendant Corporation), the world's leading real estate brokerage francisor, entered into a long-term strategic alliance with Sotheby's Holdings, Inc. (LSE: STBA).

Franchisor Background

Year Established: 2004

Franchising Since: 2004

Operating Units

Franchised Units 480 91.6%
Company-Owned Units 44 8.4%
Total Operating Units 524 100%

Geographic Distribution

USA 339 63.4% In 36 States
Canada 11 2.1% In 3 Provinces
International 185 34.6% In 39 Foreign Countries
Total 535 100%

Multi-Unit Operators

Multi-Unit Operators N/A
Franchises Owned by Multi-Unit Operators N/A

North American Unit Density

Density Units
New Jersey 34
New York 30
California 28

Registered in the following Registration States

California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District of Columbia, Alberta

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Support and Training

General Information

IFA Member Yes
CFA Member No
Franchisee Association? Yes, is a member
Size of Corporate Staff 28
Site Selection
Assistance
No
Lease Negotiation Assistance No
Financial Assistance No

Marketing Support

Co-Op Advertising Yes
National Advertising Yes
Regional Advertising No
Local Advertising No
Marketing Materials Ad Slicks, Brochures, Catalogs, Coupons/Rebates, Direct Mailers, Emails, Promotional Items, Site Signs, Videos
Additional Services: Grand Opening, In-House Marketing, Marketing Research, Newsletter, Online Extranet, Press Releases, Sales Strategies
Other Marketing Support International Advertising

Ongoing Support

Central Data Processing Included
Central Purchasing Included
Field Operation Evaluation Included
Field Training Included
Initial Store Opening Included
Inventory Control N/A
Franchisee Newsletter Included
Regional or National Meetings Yes, at additional cost
800 Telephone Hotline Included

Training

Varies Ongoing
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Financial Requirements

Investment

Minimum Net Worth $150K
Cash Investment $51.5-146K
Total Investment $153.5-566K
Average Total Investment $360K

Fees

Initial Franchise Fee $25K
Average Franchise Fee $25K
On-Going Royalty 6%
Average Royalty 6%
Advertising Fee 2%

Site Information and Requirements

Average Number of Full-Time Employees Varies
Average Number of Part-Time Employees Varies
Space Needs (in square feet) 1800-3500
Preferred Site Types Free Standing Building
Encourages Conversions Yes
Item 19 (Earnings Claim) Provided? Yes
Listed in the SBA Registry? No
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Franchisee Qualifications

Financial Net Worth 4
General Business Experience 4
Specific Industry Experience 5
Formal Education 4
Psychological Profile 4
Personal Interviews 4
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Terms of Contract

Term of Initial Contract 10
Term of Renewal Period Varies
Passive Ownership? Allowed, but discouraged
Area Development
Agreements?
No
Sub-Franchisor
Contracts?
No
Franchisees Allowed to Expand Within Territory? Yes
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Expansion Plans

USA Yes, All United States
Canada Yes, All Canada
Overseas Yes, All Countries
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Request Information for Sotheby's International Realty

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