FDD Analysis Report
The Agency
The Agency Real Estate Franchising, LLC
Key Metrics At-a-Glance
See FDD
See FDD
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of gross sales
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of gross sales
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91 units
N/A
Not disclosed
About This Franchise
## Executive Summary
The Agency represents a premium entry point into the luxury real estate franchise sector. Founded in 2011 by CEO Mauricio Umansky in Los Angeles and headquartered in Beverly Hills, the brand began franchising in 2016. With a total investment ranging from $119,600 to $856,150 and a 5% royalty fee, The Agency offers qualified entrepreneurs access to one of the most recognized names in high-end residential real estate. The franchise network comprises 91 U.S. locations, with 54 franchised units and 37 corporate-owned offices.
## The Numbers
**Investment Overview:** - Total Investment: $119,600 - $856,150 - Franchise Fee: Included in initial investment ($47,500 - $48,700 to franchisor) - Royalty Fee: 5% of monthly sales - Franchise Units: 54 franchised, 37 corporate-owned
**Financial Requirements:** - Investment range varies significantly based on market and office size - Higher-end investments typically correlate with premium markets
## The Business Model
The Agency operates as a full-service luxury real estate brokerage, distinguishing itself through sophisticated branding, high-end client services, and a focus on the luxury residential market. The franchise model allows real estate professionals to leverage The Agency established brand recognition while maintaining operational independence within their protected territories.
Key differentiators include: - Focus on luxury and high-end residential properties - Strong brand identity associated with celebrity clientele - Comprehensive marketing support and technology platforms - Territory protection ensuring franchisees do not compete internally
## System Health
The Agency demonstrates solid system health with a balanced mix of franchised and corporate locations. The presence of 37 corporate-owned offices indicates the franchisor ongoing commitment to the business model. The brand association with high-profile transactions and its Beverly Hills headquarters reinforce its positioning in the luxury market segment.
Growth indicators: - Consistent expansion since beginning franchising in 2016 - Strong brand recognition in luxury real estate circles - Established corporate presence supporting franchise network
## Franchisee Experience
Franchisees receive comprehensive training focused on the luxury real estate market, including: - High-level sales techniques tailored to luxury properties - Client service practices for high-net-worth individuals - Negotiation strategies specific to premium transactions - Client relationship management methodologies - Personalized service approaches for discerning buyers
Territory protection ensures franchisees can build strong local client bases without internal competition, a critical factor in relationship-driven luxury real estate.
## Key Considerations
**Strengths:** - Prestigious brand with strong luxury market positioning - Territory protection for market development - Comprehensive training program - Lower royalty rate (5%) compared to some competitors - Growing network with proven corporate locations
**Challenges:** - High investment ceiling for premium markets - Success heavily dependent on local market conditions - Luxury market can be cyclical and sensitive to economic conditions - Requires existing real estate expertise and connections
**Ideal Candidate:** - Experienced real estate professionals with luxury market knowledge - Strong financial backing for market entry - Established network in target territory - Commitment to premium service standards
## Validation Questions
1. What is the average time to profitability for new franchisees? 2. How does The Agency support lead generation in new territories? 3. What marketing materials and technology platforms are provided? 4. How are territories defined and what population or transaction volume do they encompass? 5. What ongoing training and support is available after initial onboarding? 6. How does the corporate office handle referrals between franchise locations? 7. What is the average agent retention rate across franchise locations? 8. How has the franchise performed during real estate market downturns? 9. What differentiates The Agency technology platform from competitors? 10. Are there minimum performance requirements to maintain the franchise agreement?
Ongoing Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Royalty | See FDD of Gross Revenue | - |
| Brand Fund | See FDD of Gross Revenue | - |
Item 19: Financial Performance Representations
No Financial Performance Representations
This franchisor does not provide Item 19 financial performance representations. Approximately 35% of franchisors choose to disclose this information.
Recommendation: Request financial information directly from existing franchisees listed in Exhibit I during your due diligence. Contact 10-15 franchisees to gather revenue and profitability data before making an investment decision.
Learn more about Item 19 disclosures →Risk Assessment
Items to Review
No notable items identified
Positive Indicators
Review FDD for positive factors
Due Diligence Recommendations
Contact 10-15 existing franchisees to gather operational and financial insights
Franchisee interviews are the most valuable source of information about day-to-day operations and realistic financial expectations.
Have a franchise attorney review the Franchise Agreement
Professional legal review can identify unfavorable terms and potential negotiation points.
Research local market conditions and competition
Understanding your specific market is essential for success, regardless of system-wide performance.
Download Complete FDD
Access the full Franchise Disclosure Document including all 23 items, exhibits, and financial statements.
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Learn More About FDDs
New to franchise investing? Our educational guides will help you understand what to look for in the The Agency FDD.
The Ultimate Guide to FDDs
Learn how to read and analyze Franchise Disclosure Documents
Understanding Item 7: Initial Investment
How to evaluate franchise investment costs
FDD Item 5: Initial Fees Explained
What you pay upfront to become a franchisee
Item 20: Franchisee Information
Analyze system growth and contact franchisees
About The Agency Franchise
The Agency is a franchise that offers entrepreneurs the opportunity to own and operate their own business within an established system. As of the 2026 Franchise Disclosure Document, the system has grown to 91 locations across the United States. This analysis provides prospective franchisees with key insights from the FDD to support informed investment decisions.
The Agency Franchise Cost
The total initial investment required to open a The Agency franchise ranges from See FDD for details. This investment includes the initial franchise fee of See FDD for details, along with expenses for real estate, equipment, inventory, training, and working capital to sustain operations during the initial period. Ongoing fees include a royalty fee of See FDD of gross sales. Prospective franchisees should review Item 7 of the FDD for a complete breakdown of estimated initial investment costs.
The Agency Item 19 Financial Performance
The Agency does not provide financial performance representations in Item 19 of their FDD. Approximately 35% of franchisors choose to disclose this information. Without franchisor-provided financial data, prospective franchisees should contact existing franchisees directly to gather information about revenue, expenses, and profitability. The franchisee contact list in Exhibit I provides names and contact information for current and former franchise owners.
The Agency Franchise Growth and System Health
The The Agency franchise system has shown stable performance based on unit count data from Item 20 of the FDD. Prospective franchisees should examine the historical data on unit openings, closings, and transfers to understand the system's trajectory and identify any concerning trends.
The Agency Franchise Investment Considerations
The The Agency FDD contains important disclosures that prospective franchisees should carefully review before making an investment decision. Key factors to evaluate include the franchise fee structure, ongoing royalty requirements, territory rights, termination history, and franchisor support systems. Every franchise investment carries risk, and this analysis should be combined with professional legal and financial advice. Review the complete FDD and speak with current franchisees to gain a comprehensive understanding of the opportunity.
Due Diligence Recommendations for The Agency
Before investing in a The Agency franchise, prospective franchisees should:
- Contact multiple existing franchisees to gather operational and financial insights
- Have a franchise attorney review the Franchise Agreement and all exhibits
- Research local market conditions and competitive landscape
- Develop a detailed business plan with realistic financial projections
- Verify all information provided by the franchisor independently
Download the The Agency FDD
Access the complete The Agency Franchise Disclosure Document, including all 23 Items, exhibits, franchise agreement, and audited financial statements. FreeFDDs™ provides free access to FDDs to promote franchise transparency and help prospective franchisees make informed decisions. The FDD contains critical information that should be reviewed in its entirety before making any investment decision.
Disclaimer
This analysis report is provided for informational purposes only. The data presented has been extracted from the Franchise Disclosure Document and may contain errors or omissions.
Prospective franchisees should conduct their own due diligence, review the complete FDD document, and consult with qualified legal and financial advisors before making any investment decisions.