What was the amount of franchise fees for Better Homes And Gardens Real Estate in 2023?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
sion income as a royalty fee). The volume incentives currently in effect vary for each eligible franchisee for which the Company provides a detailed table that describes the gross revenue thresholds required to achieve a volume incentive and the corresponding incentive amounts and are subject to change.
Domestic initial franchise fees and international area development fees were $5 million, $5 million and
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Better Homes And Gardens Real Estate collected $5 million in domestic initial franchise fees and international area development fees in 2023. This figure is part of the overall revenue that the company generates from franchising activities.
It is important to note that this $5 million figure does not represent the total revenue from all franchise fees. Better Homes And Gardens Real Estate also collects ongoing royalty fees from franchisees, which are calculated as a percentage of gross commission income. These royalty fees can be structured in various ways, including volume-based incentives, flat percentage royalty fees, capped fees, and tiered royalty fees. The royalty revenue is recorded net of annual volume incentives provided to real estate franchisees. In 2023, the franchise royalty revenue was recorded net of $43 million in volume incentives.
Prospective franchisees should understand the different types of fees involved in a Better Homes And Gardens Real Estate franchise, including the initial franchise fee and the ongoing royalty fees. The initial franchise fee is a one-time payment, while the royalty fees are ongoing and based on a percentage of gross commission income. The structure of the royalty fees can vary depending on the franchise agreement. Understanding these fees is crucial for assessing the overall cost and potential profitability of the franchise.