Business Description

Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby's International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. In February 2004, Realogy Corporation (then Cendant Corporation), the world's leading real estate brokerage francisor, entered into a long-term strategic alliance with Sotheby's Holdings, Inc. (LSE: STBA).

Franchisor Background

Year Established:  2004

Franchising Since:  2004

Operating Units:
Franchised Units:	480	91.6%
Company-Owned Units:	44	8.4%
Total Operating Units:	524	100.0%
Minority Representation Units Owned by Minorities: African-American: 0 Asian-American: 0 Hispanic: 0 Native American: 0 Other: 0 Specific Minority   Program(s) in place:
Geographic Distribution: U.S.: 339 63.4% In 36 States Canada: 11 2.1% In 3 Canadian Provinces International: 185 34.6% In 39 Foreign Countries   Total: 535 100.1.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. California	28
2. New Jersey	34
3. New York	30

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia, Alberta

Financial Requirements

Investment:
Minimum Net Worth:	$150K
Cash Investment:	$51.5-146K
Total Investment:	$153.5-566K
Average Total Investment:	$360K
Fees:
Initial Franchise Fee:	$25K
Average Franchise Fee:	$25K
On-Going Royalty:	6%
Average Royalty:	6%
Advertising Fee:	2%

Average Number of Employees: Varies Full-time, Varies Part-time

Space Needs (in square footage): 1800-3500

Preferred Sites: Free-standing Building

Other Sites:

Encourage Conversions? Yes

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	4
Specific Industry Experience:	5
Formal Education:	4
Psychological Profile:	4
Personal Interview(s):	4
Terms of Contract
Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	Varies Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	No
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	28
Site Selection Assistance?	No
Lease Negotiation Assistance?	No
Financial Assistance?	No
Marketing Support:
Co-Op Advertising:	Yes
National Advertising:	Yes
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	Ad Slicks, Brochures, Catalogs, Coupons/rebates, Direct Mailers, Emails, Promotional Items, Site Signs, Videos
Additional Services:	Grand Opening, In-house Marketing, Marketing Research, Newsletter, Online Extranet, Press Releases, Sales Strategies
Other Marketing Support:	International Advertising
On-Going Support:
Central Data Processing:	Included in Fees
Central Purchasing:	Included in Fees
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	At Additional Cost
800 Telephone Hotline:	Included in Fees
Training:
1. Varies
Expansion Plans
Projected New Units Over Next 12 months: Varies U.S.: Yes, All United States Canada: Yes, All Canada Overseas: Yes, All Countries	Request Franchisor Info   Submit an online form to receive information from Sotheby's International Realty.