Berkshire Hathaway HomeServices

The initial franchise fee ranges from $5,000 to $25,000 depending on territory size and agent count — lower than most B2B service franchises. Total investment of $43K to $88K covers the franchise fee, office setup, technology, training, and working capital. For a real estate brokerage, working capital needs are relatively modest since agent commissions are paid after transactions close.

The royalty structure is designed for established brokerages: 6% of gross revenue on the first $1.65M, declining in steps down to 2% above $100M. The Marketing Fee mirrors this structure at 1% (under $1M) down to 0.15% (over $100M). A brokerage doing $5M in gross revenue (commissions earned) would pay roughly $220K in royalties — 4.4% blended. One doing $1M pays $60,000 — 6% flat.

The $4,125 Annual Referral Channel Development Fee is payable regardless of revenue. Sales Convention registration adds $585 when required. Berkshire Hathaway HomeServices does not restrict territory — your license covers a geographic area, but other franchisees can open nearby.

BHHS does not make any financial performance representations in its 2022 FDD. For a real estate brokerage network, this is a notable omission — independent brokerage benchmarking data is publicly available from NAR, Swanepoel, and T360, but the franchisor offers nothing specific to BHHS franchisee performance. A buyer cannot model royalty payback or compare BHHS gross revenue per agent against RE/MAX, Keller Williams, or eXp Realty without going outside the FDD entirely.

The FDD data reflects unit counts from 2019-2021 (279, 279, 284 units), with a total of 268 units as of the current filing. The unit count has been essentially flat with slight growth — not a shrinking system, but not growing aggressively either. The real estate brokerage franchise market has been under structural pressure since 2023 from high interest rates and declining transaction volumes, and from the August 2024 NAR settlement changing buyer-agent commission disclosure practices.

BHHS operates in the full-service traditional brokerage segment, which competes against lower-commission hybrid models and 100% commission brokerages that have been taking market share from traditional franchised brokerages.

The FDD is from 2022 — significantly outdated for a market that changed dramatically in 2023-2024. The absence of financial performance data combined with an outdated filing means you're making a major business decision with minimal franchisor-provided context. Request the most current FDD and ask specifically whether the franchisor has filed an updated version.

Real estate brokerage franchises compete against Keller Williams and RE/MAX, both of which have established agent recruiting systems, training platforms, and brand recognition. BHHS offers the Warren Buffett brand association, which has consumer-facing appeal, but agent recruiting is primarily driven by commission split structures, technology tools, and team culture — areas where the franchise fee buys brand permission, not competitive advantage.