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ERA Real Estate Franchise ProfileReal Estate Franchises > Residential Brokerage |
What Are the Initial Costs to Open an ERA Real Estate Franchise?
To open an ERA Real Estate franchise, you can expect a low initial investment of approximately $27,350 and a high of around $435,050. The initial franchise fee is set at $25,000. Beyond the franchise fee, you’ll need to budget for ongoing royalty fees of 6% and a marketing fee of 1.5%. It’s also essential to have cash reserves ranging from $25,000 to $100,000 and a net worth of at least $150,000 to meet the financial requirements for franchise ownership.
What Is the Average Revenue for an ERA Real Estate Franchise?
ERA Real Estate franchises have shown promising financial performance, with an average annual revenue per unit of $6,908,000. The median annual revenue stands at $5,615,131, while some units report revenues as low as $20,000 and as high as $25,268,083. These figures indicate a robust earning potential, making it an attractive opportunity for aspiring franchisees in the real estate sector.
How Long Does It Take to Break Even with an ERA Real Estate Franchise?
Franchisees can expect to break even within approximately 18 months of operation. This relatively quick breakeven period suggests that with effective management and marketing strategies, franchisees can recoup their initial investments and start generating profits sooner than in many other industries. Additionally, the investment payback period is estimated at around 30 months, providing a clear timeline for financial planning.
What Are the Key Operational Expenses for an ERA Real Estate Franchise?
Operational expenses for an ERA Real Estate franchise can vary, but a typical breakdown includes rent or lease costs ranging from $0 to $50,000, employee salaries and benefits between $15,000 and $40,000, and marketing expenses up to $10,000. Other miscellaneous expenses can add up to $500, leading to a total annual expense range of approximately $50,250 to $168,500. Understanding these costs is crucial for effective budgeting and financial management.
ERA Real Estate Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
ERA Real Estate Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 468 | 472 | 470 |
| Net Change YoY | 4 | -2 | |
| Franchised Units | 468 | 472 | 470 |
| Net Change YoY | 4 | -2 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The ERA Real Estate franchise offers a low initial investment ranging from $27,350 to $435,050, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $25,000. Franchisees can expect ongoing royalty fees of 6% and a marketing fee of 1.5%, ensuring support for brand promotion and operational success.
Financial Performance
On average, ERA Real Estate units generate significant revenue, with an average annual revenue of $6,908,000. The median annual revenue stands at $5,615,131, showcasing the potential for profitability within the franchise model. The highest reported annual revenue per unit reaches an impressive $25,268,083, highlighting top-performing locations.
Operational Costs
Franchisees should anticipate various operational expenses. The total annual running costs can range from $50,250 to $168,500, encompassing rent, utilities, employee salaries, marketing, and miscellaneous expenses. Understanding these costs is crucial for effective budgeting and financial planning.
Breakeven and Payback
The ERA Real Estate franchise has a breakeven time of approximately 18 months, allowing franchisees to recoup their initial investment relatively quickly. The investment payback period is estimated at 30 months, providing a clear timeline for financial recovery and ongoing profitability.
Franchise Growth
ERA Real Estate has demonstrated steady growth over recent years, maintaining a consistent number of franchised units. In 2022, the network comprised 470 franchised units, slightly down from 472 in 2021. This stability reflects the brand's resilience and commitment to supporting franchisees in a competitive market.
Franchise Support
ERA Real Estate provides comprehensive support to its franchisees, including training, marketing resources, and operational guidance. This robust support system helps franchisees navigate challenges and leverage opportunities, ultimately enhancing their chances of success within the real estate industry.
Frequently Asked Questions
The initial investment for an ERA Real Estate franchise ranges from $27,350 to $435,050, which includes a franchise fee of $25,000.