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Description
Investment Icon

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.

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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.

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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.

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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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$150,000 - $150,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

30 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$25,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

6%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

1.50%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

18 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$27,350 - $435,050
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$25,000 - $100,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$2,872,132
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$5,615,131
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$25,268,083
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$20,000
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Real Estate Franchises
Category icon A more specific division within the broader industry.

i Category:

Residential Brokerage
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Susan Elizabeth Yannaccone
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

175 Park Avenue, Madison, New Jersey, 07940
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2007
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

ERA Franchise Systems LLC

ERA Real Estate Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

470
The number of locations owned by independent franchisees.

Franchised Units i

470
The number of locations owned and run by the franchisor.

Corporate Units i

0
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 About

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.

Potential About

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.

Metrics About

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.

Fees About

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.

Breakeven About

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.

Units About

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.