Century 21

Century 21 Real Estate LLC is one of the biggest names in real estate. Century 21, which began as a boutique agency in Orange County, Calif., in 1971, is today a franchisor that employs 147,000 brokers and sales associates in 45 countries.

Century 21 is a subsidiary of Realogy, a real estate company that owns other prominent brands in the industry, including Coldwell Banker and Sotheby's International Realty. Realogy is in turn owned by a subsidiary of Apollo Management, a private-equity investor.

Century 21 Franchising Information

Century 21 has been a franchisor since 1972. Today, there are more than 8,000 Century 21 franchisees all over the world. Although Century 21 does not disclose this on its web site, franchise information site FranchiseMall.com claims the initial fee for a Century 21 franchise is $25,000 and that Century 21 takes 6% royalties (an industry standard) from franchisees.

In exchange for this investment, franchisees enjoy use of the Century 21 brand, national and local advertising support and access to Century 21's Internet tools. Together, these tools and approaches constitute what the company calls the Century 21 System.

How Century 21 Differs From Other Franchises

To smaller, independent brokers, the Century 21 System offers a combination of products and services -- including advertising, marketing slicks and home marketing packages -- that cannot easily be put together by a few agents working alone. The point of letting Century 21 take care of the administrative, advertising and marketing duties is to give the agent more opportunity to sell. For small brokers, then, Century 21 can be an effective back office that supports their efforts in the field.

Despite changes in the real estate market over the years, Century 21 is backed by a lot of money. The company's parent, Realogy, is a multibillion-dollar holding company that has access to the deep pockets of Apollo Management. The survival of Century 21 as a corporate entity, or as a brand, is not in doubt.

Local real estate brokers can grow only so large before running into problems of scaling upward. For such companies, which may have dozens of employees but limited advertising budgets and branding initiatives to further grow revenue, the Century 21 brand can offer a way to elevate the company's status by building an affiliation with a powerful national brand. This can be a double-edged sword, however, as the local market may already associate Century 21 franchisees with their old brand.

Century 21's strong brand has been developed in over three decades of aggressive, multichannel advertising. However, the brand itself is not enough to differentiate multiple Century 21 franchisees that operate in the same market. For this reason, prospective Century 21 franchisees that are active in regions already replete with Century 21 brokers ought to be aware that the brand alone will not help them stand out in the marketplace.

Century 21 Benefits for Buyers and Sellers

Despite its vast size, Century 21 is essentially just a network of smaller brokers. Thus, doing business with a Century 21 broker in one city allows you access to Century 21 brokers all over the world. Because Century 21 offices share information and computer systems, buyers can extend their property search to any geographic area while dealing with the same real estate agent, and sellers gain the assurance that their property will be marketed to a broad range of potential buyers.

The Century 21 web site also offers tools directly to buyers and sellers. Buyers can search for properties, conduct research on other homes sold in that neighborhood and even receive packing tips online. Meanwhile, sellers can list properties, pick up more information about their neighborhoods (in order to arrive at a realistic selling price) and view tips on moving.

The breadth of Century 21's services and corporate presence means that Century 21 can be a one-stop destination for buyers and sellers; this can remove some of the stress from the innately tense process of transacting in real estate.

Century 21's Outlook

The real estate market is prone to turbulence, but that doesn't faze Tom Kunz, president and CEO of Century 21.

Kunz notes that even in depressed markets, fundamentals such as interest rates, employment, income adjustments and housing inventory may remain favorable. As such, Century 21 believes that the real estate market will remain active and viable, sustaining the demand for Century 21's services.

How to Contact Century 21

The Century 21 web site is the best way to contact the company, whether you want to locate a local office, find an agent or request information from the corporate office about becoming a franchisee.

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