Year Business Began: 2007
Franchising Since: 2014
Headquarters: Midvale, Utah
Estimated Number of Units: 50
Franchise Description: Keyrenter Franchise, LLC is the franchisor. Keyrenter Property Management businesses offer a full range of real estate services, focusing primarily on real estate management and rental services to owners of single-family homes, condominiums, and multi-family properties. The franchisor offers two franchise programs:
Training Overview: Franchisees must satisfactorily complete real estate or property management training by a state-certified real estate course provider prior to opening their business. The franchisor provides franchisees an initial training program that covers material aspects of the operation of the franchised business. This training is offered at the franchisor’s headquarters in Midvale, Utah or another location it designates. Franchisees must designate a manager for the franchised business and s/he must satisfactorily complete the initial training prior to opening the franchised business. One or more assistants of the franchisee’s choosing may also attend at the franchisee’s option. Periodically, franchisees, their managers or employees must attend one ongoing training session and may attend additional ongoing training sessions to be conducted at the franchisor’s headquarters or another location it designates. Franchisees must attend the annual convention, which will not exceed four days.
Territory Granted: Franchisees will be assigned a non-exclusive territory with a population of 100,000 or greater. To determine market size for the purpose of designating the territory, the franchisor uses population data from the U.S. Census Bureau or another source it deems reliable. The non-exclusive territory defines the area in which franchisees must operate their Keyrenter business. The address of the franchisee’s physical location must be within the boundaries of the territory. The territory will be identified by city, county, state, highway, or other geographic boundaries. Once established, the territory will typically not be changed. The continuation of franchise rights depends on the franchisee meeting a performance requirement.
Obligations and Restrictions: The Keyrenter franchise shall be managed by franchisees, or if they are an entity, one owner who is a natural person designated in writing to us as the person to make all decisions for the franchisee entity (designated owner). The franchisor may allow franchisees to appoint a manager (designated manager) to run the day-to-day operations of the Keyrenter franchise. The designated manager of the franchised business must be properly licensed to perform real estate activities by any applicable governing body, if the state requires licensure to perform property management functions. Franchisees must offer only the services, systems, and products the franchisor specifies. Franchisees may not sell any products, systems, or services that the franchisor has not authorized and they must discontinue offering any products or services that the franchisor may disapprove.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. There is no limit on the number of times franchisees may renew for additional terms of 10 years each. If franchisees fail to meet any one of the conditions for renewal, the franchisor may refuse to renew or extend the terms of the Franchise Agreement.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $40,000 | $40,000 |
| E-2 Visa Fee | $0 | $5,000 |
| Training Fee | $5,000 | $5,000 |
| Start-Up Marketing Package Fee | $10,000 | $10,000 |
| Travel and Living Expenses to Attend Initial Training | $2,000 | $3,000 |
| Real Estate/Rent | $0 | $5,000 |
| Utility Deposits | $0 | $1,500 |
| Leasehold Improvements | $0 | $4,000 |
| Insurance | $1,500 | $4,000 |
| Office Equipment and Supplies | $1,000 | $4,000 |
| Signage | $500 | $5,000 |
| Furniture, Fixtures and Equipment | $1,500 | $2,000 |
| AppFolio Software Implementation Fee | $400 | $400 |
| Licenses and Permits | $1,650 | $3,000 |
| Legal & Accounting | $2,000 | $6,000 |
| Dues and Subscriptions | $1,500 | $3,000 |
| Keyrenter Marketing | $0 | $3,554 |
| Local Marketing and Lead Generation | $0 | $8,550 |
| Additional Funds—3 months | $30,275 | $57,275 |
| ESTIMATED TOTAL (for new franchise) | $101,125 | $178,279 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee on Gross Revenues Other Than Real Estate Sales | 7% of gross revenues. |
| Royalty Fee on Real Estate Sales Commissions and Referrals | 5% of such revenues. |
| Taxes | As required by governmental authorities. |
| Late Fees | 1.5% per month or the highest rate allowed by the state where the franchisee located, whichever is less, plus collections costs. |
| Technology Fee | $150 per month. |
| Office Relocation Fee | $350 |
| Non-Compliance Fee | $25 per day. |
| Renewal Fee | $2,500 |
| Relocation Assistance | Approximately $750 - $1,500. |
| Substitute or New Manager Training/ Additional Training | Currently $495 per day, plus the franchisee’s expenses in attending. |
| Additional Operations Assistance | Currently, $250 per day plus the franchisor’s expenses. |
| Annual Keyrenter Summit Convention Attendance Fee | $495 per person at present; may vary in the future. |
| System Modifications | Not more than $5,000 in the first year of the franchise agreement, and not more than $50,000 during the initial term of the franchise. |
| Brand Development Fund Contribution | 1% of gross revenues. |
| Keyrenter Marketing | $575 per month + 3% credit card fee. |
| Local Marketing and Lead Generation Spend | $1,425 or 3% of your past month’s Gross Revenue, whichever is greater. |
| Unauthorized Advertising Fee | $500 per occurrence. |
| Additional Marketing and Advertising Services | Varies based upon service requested. |
| Telephone Number Charges | Actual amount incurred. |
| Audit Expenses | All costs and expenses associated with audit, approximately $1,500 - $5,000. |
| Approval of Products or Suppliers | $100 - $1,000 |
| Customer Service | All costs incurred in assisting customers. |
| KeyAssist Services | Varies depending on service. |
| Insurance Policies | Amount of unpaid premiums plus the franchisor’s reasonable expenses in obtaining the policies. |
| Temporary Management Assistance | Currently, $500 per day, plus the franchisor expenses. |
| Transfer Fee | $10,000 plus any actual cost of a broker fee, commission, or finder’s fee that the franchisor incurred. |
| Transfer Fee to Controlled Entity | $250 |
| Indemnification | All costs including reasonable attorneys’ fees. |
| Costs and Attorney Fees | Amount incurred. |
The above information has been compiled from the FDD of Keyrenter Property Management. Year of FDD: 2022.
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