1st Class Real Estate Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
1st Class Real Estate is a residential real estate brokerage franchise offering agent-friendly commissions and support. Franchisees run local brokerages, recruiting agents and managing listings, sales, and transactions.
FranchiseVerdict summary · 2026
A 1st Class Real Estate franchise does not disclose total investment in its current FDD, including a $25K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- N/A
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 18
- 20th pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment N/A including a $25K franchise fee.
- RETURNSFY2025 total operating revenue $2,884,655 (franchise fees $2,650,403 + operation revenue $234,252); FY2024 $2,753,916. Net income FY2025 $717,037, FY2024 $614,563. Members' equity (deficit) at 12/31/2025 was $(593,324), improved from $(1,070,991). Negative members' equity drives the financial_distress flag; the auditor issued an unqualified opinion with only boilerplate going-concern responsibility language (no emphasis-of-matter going-concern paragraph). Note Item 8 cites a different total revenue figure of $2,078,915 used to compute the rebate percentage.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- FLAG6 units terminated last reporting year (33.3% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- 1st Class Franchising, LLC d/b/a 1st Class Real Estate
- Parent company
- 1st Class Holding Inc.
- Predecessor
- 1st Class Properties LLC
- Prior franchisor entity
- 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
- Barnes, Brock, Cornwell & Painter PLC
- Audited financials
- Franchisor revenue
- $2.9M
- vs $2.8M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Rhyan Finch
- Headquarters
- FL
- Founded
- 2018
- FDD year
- 2026
- States available
- 8
Can you afford it, and what does the money buy?
Source: FDD 2026 · Items 5–7
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- N/A
- All-in to open one unit
- Liquid capital req'd
- $3K – $3K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- No royalty is charged to the Area Representative; the Are…
- 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 | $500 |
| Transfer fee | $2K |
| Renewal fee | $5K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
1st Class Real Estate did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one 1st Class Real Estate unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
50%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
FY2025 total operating revenue $2,884,655 (franchise fees $2,650,403 + operation revenue $234,252); FY2024 $2,753,916. Net income FY2025 $717,037, FY2024 $614,563. Members' equity (deficit) at 12/31/2025 was $(593,324), improved from $(1,070,991). Negative members' equity drives the financial_distress flag; the auditor issued an unqualified opinion with only boilerplate going-concern responsibility language (no emphasis-of-matter going-concern paragraph). Note Item 8 cites a different total revenue figure of $2,078,915 used to compute the rebate percentage.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -21.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
67% of franchisees own multiple units — high repeat-buyer rate signals strong unit economics and operator satisfaction.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Real Estate averages
How 1st Class Real Estate Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- 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
- 16.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 66.7%
- Net growth (3-yr)
- -21.7%
- Net unit change over 3 years
- 3-yr CAGR
- -21.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 · 10 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Item 3 states: "No litigation is required to be disclosed in this Item."
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Barnes, Brock, Cornwell & Painter PLC
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
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 39 / 100 verdict
- 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
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| 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 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Sarasota, Florida |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 0 |
View Item 3 litigation summary
Item 3 states: "No litigation is required to be disclosed in this Item."
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual / online
- Ongoing training
- Optional
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 3 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- 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
23 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
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 Item 19 in the 1st Class Real Estate FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the 1st Class Real Estate FDD and qualifies whose outlets they describe.
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 18 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 C-grade franchise with a verdict score of 39 out of 100 (higher is better), 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.
For franchisors
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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.