UPFRONT COSTS /
The cost of purchase varies depending on the specific franchise. Upfront costs can be as high as $250,000. Monthly running costs can average $15,625.
The upfront cost to open an OWR branch is $5,000 (state regulatory fees may apply). Monthly running costs can be as low as $1,325.
The break-even point will vary depending on company and location. After paying your franchise fee(s) and the commission split with each agent, there will be a small percentage left for you to pay overhead, resulting in the need for a large number of agents to make any profit.
The OWR structure allows you to cover your office expenses, as well as marketing (email, direct mail, and other advertising) with as few as 14 agents*. *Actual performance has exceeded estimated figures in most offices.
When purchasing a franchise, the corporate support you receive usually consists of providing policies and procedures for setting up an office. Support is limited when it concerns building and marketing for your individual office.
Corporate assists you every step of the way, providing you with the support you need to start, maintain, and build your office. We maintain all regulatory paperwork in encrypted cloud storage to meet the requirement for your Real Estate Commission. We also provide Corporate support and the tools to help you succeed.
RETURN ON INVESTMENT
Due to the large upfront cost, along with the high monthly running costs, it takes a longer period of time to not only breakeven but to make a profit.
Because of the lower upfront cost associated with opening an OWR branch and lower costs branches makes profits sooner.