Keller Williams FDD Item 6: Other Fees | What Franchisees Need to Know
Keller Williams Realty is the largest real estate franchise in the United States by agent count, with over 145,000 agents and $370.8 billion in U.S. sales volume in 2024. For prospective market center owners (the KW term for franchise offices), FDD Item 6 reveals a uniquely structured fee system. The headline feature is the 6% franchise fee capped at $3,000 annually. This cap is one of the most favorable in the franchise industry. But the total cost of operating a KW market center involves additional fees that require careful analysis.
At Lopes Law LLC, we review Keller Williams FDDs for prospective market center owners. The fee structure is distinctive and requires understanding not just the franchise fees but also the agent commission model, technology costs, and operating expenses that drive overall profitability.
What Fees Does Keller Williams FDD Item 6 Disclose?
| Fee Category | Amount | When Paid |
|---|---|---|
| Franchise Fee | 6% of gross revenue, capped at $3,000/year | Periodic payments |
| Technology Fees | KW Command and platform costs | Monthly |
| Training/Education | KW programs and events | As incurred |
| Insurance | Required minimums | Annually |
| Transfer Fee | As disclosed | Upon transfer |
The $3,000 Cap: What It Means
Keller Williams’ $3,000 annual franchise fee cap means that regardless of how much revenue your market center generates, the maximum franchise fee to the franchisor is $3,000 per year. For a market center generating $5 million in gross commission income, the effective franchise fee rate is 0.06%. This is dramatically lower than most franchise systems.
The cap makes KW attractive for high-volume market centers. However, the franchise fee is only one component of the total cost structure. Technology fees, office rent, staff salaries, and the agent commission split model all affect the owner’s bottom line.
Attorney’s note: At Lopes Law LLC, we advise KW prospects that the $3,000 franchise fee cap, while genuinely favorable, should not overshadow the analysis of other cost components. The agent commission structure (typically 70/30 until the agent caps) means that in a high-performing market center, most of the gross commission income flows to agents rather than to the brokerage. The market center owner’s income comes from the 30% share of agent commissions (before cap), plus any transaction fees after agents cap, minus all operating costs.
Reviewing a Keller Williams FDD Right Now?
At Lopes Law LLC, our $3,000 flat-fee FDD validation review covers all 23 items. Free 20-minute consultation.
For related analysis, see our real estate franchise law guide and our franchise exit audit service.
Important: Fee information is based on publicly available Keller Williams FDD data. Actual terms vary. Always review the current FDD with a qualified franchise attorney before investing.
Frequently Asked Questions About Keller Williams FDD Item 6
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Last updated: March 12, 2026
Understand the Complete Fee Structure
At Lopes Law LLC, our flat-fee FDD validation review covers every fee in the Keller Williams FDD. Free 20-minute consultation.