In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Property Management Inc. franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Property Management Inc. franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Property Management Inc. outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Property Management Inc. franchise opportunity

Section V – Presentation and analysis of Property Management Inc.’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low revenue per property/association for residential, commercial, association, and short-term rental pillars of Property Management Inc. franchisees that provided complete and sufficient information

• 2023 average, median, high, and low property/association count for residential, commercial, association, and short-term rental pillars of Property Management Inc. franchisees that provided complete and sufficient information

• 2023 average annual revenue per pillar (residential, commercial, association, and short-term rental) for Property Management Inc. franchisees that provided complete and sufficient information

• 2023 average annual revenue for 158 Property Management Inc. franchise locations that are operating in multiple pillars

Section VI – Key ratios, comparables, computations, and analyses for the Property Management Inc. franchise opportunity (exclusive content for Platinum subscribers)

Section I – Property Management Inc. Franchise Costs

• Franchise Fee:  $59,900 to $85,000
• Rent:  $0 to $2,000
• Rental Improvements:  $0 to $2,500
• Deposits:  $0 to $2,500
• Pillar Certification (Training Program, Workshop, and PMiLAUNCH):  $0 to $3,800
• Equipment and Business Supplies:  $500 to $3,000
• Computer Hardware and Software (including PMiSOFT, PMiWARE, PMiPrograms, and PMiSTR, as required):  $675 to $5,950
• Local Advertising Expenses for a Period of 3 Months:  $4,500 to $13,500
• Insurance:  $2,000 to $5,000
• Professional Services:  $0 to $1,500
• VOIP Telephone Equipment (3 months not including FCC fees and taxes):  $300 to $500
• Additional Funds for Period of 3 Months:  $0 to $20,000
• Initial Trust Account Deposit (Residential, Commercial, and Short-Term Rental Pillars):  $500 to $1,000
• STRBooks (Short-Term Rental Pillar only):  $1,750
• Total Estimated Property Management Inc. Franchise Costs:  $70,125 to $148,000

Section II – Property Management Inc.’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $59,900 to $85,000

• Royalty:  monthly (i) 5.0% of Brokerage, plus (ii) a tiered percentage of Gross Revenue (the greater of 7% or $350, $700, $1,050 based on Territory Sales Quota, on Gross Revenue up to $35,000; plus 6% of Gross Revenue from $35,001-$75,000; plus 5% on Gross Revenue above $75,001), plus (iii) 0.5% of rents collected on self-owned rental Doors and Suites, and 1% booking revenue collected on self-owned Keys

• National Advertising Fee:  2.0% of Gross Revenue

• Local Advertising:  minimum of $1,500 per month and $1,000 per month for each additional pillar (Digital Marketing Program counts toward the $1,500 and $1,000 for each additional pillar per month minimum)

Section III – Number of Franchised and Company-Owned Property Management Inc. Outlets

Franchised

2021

• Outlets at the Start of the Year:  294
• Outlets at the End of the Year:  354
• Net Change:  +60

2022

• Outlets at the Start of the Year:  354
• Outlets at the End of the Year:  374
• Net Change:  +20

2023

• Outlets at the Start of the Year:  374
• Outlets at the End of the Year:  377
• Net Change:  +3

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2023

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  0
• Net Change:  -2

Section IV – News Updates on the Property Management Inc. Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Property Management Inc. Franchise (Item 19, 2024 FDD)

• As of December 31, 2023, Property Management Inc. had 408 total locations. Based upon data and information for the 2023 calendar year, Property Management Inc. has created the financial performance representations made in this Item 19. The material basis for such representations are as follows:

• Property Management Inc. used only actual historical financial figures, provided from either (i) unaudited financials and operating reports submitted to it by its Franchisees, or (ii) its accounting software, for the full 2023 calendar year.

• Data from 11 franchises is not included in the 2023 data because the franchise either failed to provide Property Management Inc. with data or the data was incomplete or insufficient.

• Data for 43 franchises participating in the Residential Pillar is not included because the franchises did not manage any Doors, or the data was incomplete or insufficient.

• Data for 52 franchises participating in the Association Pillar is not included because the franchises did not manage any Associations, or the data was incomplete or insufficient.

• Data for 28 franchises participating in the Short-Term Pillar is not included because the franchises did not manage any Keys, or the data was incomplete or insufficient.

• Data for 90 franchises participating in the Commercial Pillar is not included because the franchises did not manage any Suites, or the data was incomplete or insufficient.

• Other than listed above, the data from all franchises for the full 2023 calendar year is included in the financial representations made herein. The characteristics of the franchised locations included in the financial representations made herein do not differ materially from the franchises that may be offered to prospective franchisees.

• In 2023, 1,842 Doors, 16,383 Units in 200 Associations, 28 Suites, and 33 Keys were added through acquisitions from 54 individual transactions.

Part 1 – Average Revenue per Unit

• This table shows the actual numbers for the Average & Median annual income per Property/Association. “Income” means total revenue generated by Franchisees before any costs or expenses, i.e. royalty fees, advertising fees, etc., excluding pass-through items.

Residential

• Total Eligible Franchises:  218
• High Revenue Per Property:  $7,369
• Average Revenue Per Property:  $2,400
• Median Revenue Per Property:  $2,063
• Low Revenue Per Property:  $61

Commercial

• Total Eligible Franchises:  29
• High Revenue Per Property:  $8,435
• Average Revenue Per Property:  $1,634
• Median Revenue Per Property:  $1,152
• Low Revenue Per Property:  $15

Association

• Total Eligible Franchises:  89
• High Revenue Per Association:  $60,111
• Average Revenue Per Association:  $12,143
• Median Revenue Per Association:  $9,843
• Low Revenue Per Association:  $13

Short-Term Rental

• Total Eligible Franchises:  69
• High Revenue Per Property:  $42,561
• Average Revenue Per Property:  $9,289
• Median Revenue Per Property:  $7,428
• Low Revenue Per Property:  $458

Annual Revenue Per Business

• Residential:  $296,389
• Commercial:  $29,644
• Association:  $176,973
• Short-Term:  $211,135

Median Revenue Per Business

• Residential:  $162,430
• Commercial:  $7,486
• Association:  $98,425
• Short-Term:  $90,991

Part 2 – Average Property/Association Count

• This table shows the actual numbers for Average & Median property/association count for Doors, Associations, Keys, and Suites by Franchisee.

Residential

• Total Eligible Franchises:  218
• High Unit Count:  1,100
• Average Unit Count:  124
• Median Unit Count:  79
• Low Unit Count:  2

Commercial

• Total Eligible Franchises:  29
• High Unit Count:  140
• Average Unit Count:  18
• Median Unit Count:  7
• Low Unit Count:  1

Association

• Total Eligible Franchises:  89
• High Unit Count:  110
• Average Unit Count:  15
• Median Unit Count:  10
• Low Unit Count:  1

Short-Term Rental

• Total Eligible Franchises:  69
• High Unit Count:  217
• Average Unit Count:  23
• Median Unit Count:  12
• Low Unit Count:  1

Income per Door is comprised of the following:

1. Residential Doors

• a. Management fees ranging from 4% to 12% of gross monthly rents; and
• b. Recurring or one-time ancillary property management and other real estate services, with fees/charges/markups ranging from $1.00 to thousands of dollars, paid by property owners, tenants, service providers, and vendors.

2. Commercial Doors

• a. Management fees ranging from 2% to 8% of gross monthly rents; and
• b. Recurring or one-time ancillary property management and other real estate services, with fees/charges/markups ranging from $1.00 to thousands of dollars, paid by property owners, tenants, service providers, and vendors.

Income per Unit is comprised of the following:

1. Association Units

• a. Monthly management fees ranging from $16.00 to $7,800.00 per Association Unit; and
• b. Recurring or one-time ancillary property management and other real estate services, with fees/charges/markups ranging from $1.00 to hundreds of dollars, paid by service providers, vendors, and Associations.

Income per Key is comprised of the following:

1. Short-Term Rental Keys

• a. Management fees ranging from 10% to 40% of gross monthly rents; and
• b. Recurring or one-time ancillary property management and other real estate services, with fees/charges/markups ranging from $1.00 to hundreds of dollars, paid by property owners, tenants, guests, service providers, and vendors.

• Some PMI franchises have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.

Part 3 – Average Annual Revenue Per Pillar

Average Annual Revenue Per Pillar

• Residential:  $296,389
• Commercial:  $29,643
• Association:  $176,972
• Short-Term:  $211,135

• Property Management Inc. has 158 Franchise Locations that are operating in multiple pillars. This group of franchisees earns an average of $376,421 annually.

Section VI – Property Management Inc. Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️