Bottom line
- Total investment $24K – $64K including a $20K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 74/100.
- System contracting at -21.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one 1st Class Real Estate unit return on the cash you put in?
Unlevered ROIC · per unit
274%
Above typical band (30–60%)
Overview
About
1st Class Real Estate franchisees operate real estate brokerage and sales operations, managing agents, facilitating property transactions, and generating revenue through commissions. Day-to-day activities include recruiting and training agents, managing client relationships, marketing listings, and handling transaction coordination within their assigned market.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapidly contracting franchise system with hidden financials, unstable franchisor status, unprotected territory, and unclear profitability—high risk of franchisee failure.
Score breakdown · what drove the 74 / 100 rating
- 01MEDSevere unit decline of 21.7% YoY (23 units) suggests system contraction and franchisee struggles
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and hides performance reality
- 03MINORUnprotected territory creates direct competition risk between franchisees and cannibalization concerns
- 04MINORHigh royalty variability (10-50% of ongoing fees) with unclear fee structure creates unpredictable cost burden
- 05HIGHGoing Concern status = FALSE indicates franchisor may lack financial stability or viability assurances
- 06MINORWide investment range ($23.5K-$63.5K) suggests inconsistent startup costs and unclear value proposition
- 07MINOR10-year term locks franchisee into declining system with no exit flexibility
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
41 numbers
One-time purchase · CSV download · Validation questions included
FDD download
1st Class Real Estate · FDD (2026) PDF