Keller Williams Realty Franchise Costs, Fees & Owner Salary (2023)

Keller Williams Realty, founded in 1983, is a globally recognized real estate franchise headquartered in Austin, Texas. The company began franchising in 1987, just a few years after its inception, when founders Gary Keller and Joe Williams opened their first office. 

Keller Williams quickly distinguished itself in the competitive real estate market by becoming the largest single-office residential real estate firm in Austin within two years. This rapid success led to its expansion outside Texas and onto the international stage.

Keller Williams is renowned for its agent-centric, education-based, and technology-driven culture, which has been instrumental in its growth. This unique approach provides brokers with the opportunity to become stakeholders in the company, fostering a sense of ownership and commitment to success. 

Initial Fees

You are required to pay initial fees based on $2,000 times the minimum number of Market Centers you are obliged to open under your Regional Representative Agreement.

Training Fees

The training fees range from $60 to $2,500 per course, with a total cost around $10,200 for the mandatory courses specified in your agreement.

Offering Fee

An offering fee of $10,000 is required in advance, with any additional costs to cover review expenses of your proposed securities offering.

Late Payment and Interest

Late payments attract a fee of $500 for the first day and $100 per subsequent day, with interest on overdue payments at 18% or the maximum rate allowed by law.

KPA and Other Operational Fees

A monthly KPA fee of $500 is applicable, alongside other fees such as Research and Development, and costs for updates or modifications to the Regional Brand Standards Manuals.

Convention and Renewal Assessments

An annual convention assessment fee of up to $1,000 may be required, and a renewal fee which is the lesser of 10% of the then-current franchise fee or $5,000.

Holdover Fee

An amount equal to 75% of the fees paid out of the Production Royalty.

The franchisor provides a range of training programs for Regional Representatives, designed to ensure a comprehensive understanding and efficient operation of the franchise system. The training includes:

Monthly and In-Person Sessions

• Regional Representatives undergo training in 4 to 5-hour telephone or video conference sessions each month and participate in 1 to 2-day in-person or virtual sessions. These sessions cover franchise sales, establishment support, and development training conducted by the franchisor's staff.

Franchisee Training Programs

• Key Leaders among the Regional Representatives are required to attend certain Franchisee training programs specified in the Regional Brand Standards Manuals or as otherwise required in writing. They may also choose to attend optional courses, seminars, conferences, and training programs offered by the franchisor.

Additional Training Sessions

• The franchisor may mandate additional 1 to 2-day training sessions for new members of the Representative's Group or refresher training for those not meeting minimum operational standards. All expenses related to attending these training programs, including transportation, lodging, meals, and wages, are to be covered by the attendees.

Franchise Systems Orientation

• The Operating Principal, Regional Director, and Regional Operations Manager are required to attend the Franchise Systems Orientation initially and thereafter once every three years. This orientation is conducted in Austin, Texas, or another designated location, with a registration fee applicable for attendance.

Franchisees will not receive an exclusive territory. This means franchisees may encounter competition from other franchisees, from outlets owned by the franchisor, or through other channels of distribution or competitive brands that the franchisor controls. 

The franchisor reserves the right to recruit franchisees in or for the region, to process unsolicited applications for new franchises, and to award franchises to prospective franchisees who submit applications.

 Additionally, the franchisor may establish and grant rights to others to assist in establishing other real estate brokerage businesses identified by different trade names, trademarks, service marks, or trade dress, both inside and outside the franchisee's region. 

The franchisor's expectation for franchisees to be actively involved in the management and support of their Market Centers. The document outlines specific requirements for franchisees' involvement in the day-to-day operations of their franchises. Franchisees are expected to:

• Visit all the Market Centers in their Region in person at least once each calendar year.
• Provide continuous support and leadership throughout the year.
• Give direction and support for the Franchisee's goals.
• Provide coaching to ensure that the Franchisee is successful and profitable.
• Train and educate all Franchisees so that they are knowledgeable about all procedures, standards, and specifications outlined in the Market Center Franchise Agreements.