1st Class Real EstateFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A 1st Class Real Estate franchise requires a total initial investment of $24K – $64K, including a $20K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $24K – $64K
- 10th pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- N/A
- Units
- 23
- 18th pct Real Estate
- SBA default
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 22% year-over-year. Investigate why units are closing.
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.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- 6 units terminated last reporting year (26.1% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- 1st Class Franchising, LLC
- Parent company
- 1st Class Holding Inc.
- CEO title
- CEO and Manager
- Rhyan Finch
- CEO experience
- 13 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- FL
- HQ
- 6330 Hollywood Blvd, Sarasota, FL 34231
- Auditor
- CBX, Inc.
- Audited financials
- Franchisor revenue
- $2.8M
- vs $2.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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.
- CEO
- Rhyan Finch
- Headquarters
- FL
- Founded
- 2018
- FDD year
- 2026
- States available
- 8
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $3K | $3K |
| Equipment, build-out, other | $500 | $41K |
| Total initial investment | $24K | $64K |
Source: 1st Class Real Estate 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $24K – $64K
- Better than avg vs category
- Liquid capital req'd
- $3K – $3K
- Better than avg vs category
- Franchise fee
- $20K – $50K
- Better than avg vs category
- Royalty
- AR splits fees: receives 50% of Initial Franchise Fees, 1…
- Ad fund
- 0.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $50 |
| Training fee | $1K |
| Transfer fee | $2K |
| Renewal fee | $5K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Real Estate averages
How 1st Class Real Estate Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 23
- Opened
- 1
- Last reporting year
- Closed
- 6
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 26.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 66.7%
- Net growth (yr3)
- -21.7%
- Net unit change last year
- 3-yr CAGR
- -21.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 5
- Franchisor's next-year forecast
- Termination rate
- 33.3%
- Franchisor-initiated terminations
- Ceased ops
- 33.3%
- Units that stopped operating
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CBX, Inc.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 100 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Sarasota, Florida |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 0 hrs
- Training location
- Online for all training segments
- Ongoing training
- Optional
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 3 mo
- From signing to launch
- POS system
- Brokermint, Salesforce, Google Suite
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Brokermint, Salesforce, Google Suite
Item 20 · call current owners
Franchisee Contacts
41 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
1st Class Real Estate · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a 1st Class Real Estate franchise?
The total investment to open a 1st Class Real Estate franchise ranges from $24K – $64K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do 1st Class Real Estate franchise owners earn?
1st Class Real Estate does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is 1st Class Real Estate's franchise failure rate?
SBA 7(a) loan charge-off data is not available for 1st Class Real Estate (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many 1st Class Real Estate franchise locations are there?
As of their most recent FDD filing, 1st Class Real Estate has 23 total units in the United States, including 18 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is 1st Class Real Estate a good franchise to buy?
FranchiseVerdict rates 1st Class Real Estate as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.