Coldwell Banker Commercial

Franchise fee: $0 to $20,000 (conversion franchises often receive reduced or waived fees).

Royalty: 6% of gross revenue on first $1M per office per year; 3% on gross revenue exceeding $1M per year. Minimum quarterly royalty of $7,500 ($30,000/year) — you pay this even if calculated royalties fall short. Commercial property management services carry a separate 1.5% royalty on gross revenue from those services.

Total investment: $35,500 to $733,500. The range spans from a minimal conversion (existing brokerage, no new buildout) to a full new-construction flagship office in a major metro. Ongoing staffing costs — administrative staff, agent splits, technology platforms — are your largest variable expenses and are not captured in the FDD investment table.

Coldwell Banker does not disclose Item 19 financial performance data. Revenue benchmarks must come from franchisee interviews and local market analysis. The tiered royalty structure does provide one implicit signal: the royalty drops from 6% to 3% once an office exceeds $1M in annual gross revenue (gross commission income before agent splits). This is a meaningful incentive for scale — a large-volume office pays a materially lower effective royalty rate.

For context on what $1M GCI means: at a 3% commission rate, an office reaching the 3% royalty tier would be closing roughly $33M in transaction volume annually — achievable in a mid-size market with 8–12 producing agents. The minimum quarterly royalty ($30,000/year) creates a floor that matters most in the first 1–2 years while the office builds its agent roster.

With only 136 franchised offices in the US, Coldwell Banker's franchised footprint is notably small for a brand with this level of national awareness. Anywhere Real Estate (the parent company, publicly traded) operates a large company-owned Coldwell Banker network directly — much of what you see under the Coldwell Banker name is not franchised. This explains the compact franchised count.

Any where Real Estate's financial health directly affects Coldwell Banker system investments — the parent has carried significant debt since the Realogy era. Review Anywhere's most recent 10-K before signing a Coldwell Banker franchise agreement. A financially stressed parent company may reduce support, cut training budgets, or shift brand direction in ways that affect your franchise value.

The $30,000/year minimum royalty is the most significant financial risk for smaller offices. If your office produces $400,000 in GCI in year one (reasonable for a startup), your calculated royalty is $24,000 — but you owe $30,000. That $6,000 gap is a real cash cost on top of all other operating expenses. Confirm your ramp timeline before signing and ensure you have enough working capital to cover the minimum during your first 24 months.

As with Century 21, the absence of Item 19 data means you're making a significant financial commitment with no FDD-sourced benchmarks. The Coldwell Banker brand is recognized and respected — but brand recognition translates to agent recruitment, not guaranteed profitability. Established brokerages in many markets operate with narrow margins even in boom years.

With only 136 US franchised offices, Coldwell Banker's franchised system is less diverse than Century 21's (1,734 offices). Speaking with a broader sample of existing franchisees is critical — 136 offices in varied markets means any average would be heavily skewed by a handful of high-volume players.