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B62/100FDD 2026

Better Homes and Gardens Real Estate — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

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Elevated Risk

14 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
14
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
15
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-1.6% YoY) indicates a contracting franchise system with potential saturation or franchisee attrition
  2. 02MEDFive active antitrust class-action lawsuits directly targeting real estate commission structures and franchisor practices create existential legal/regulatory risk
  3. 03MEDNo Item 19 financial performance disclosure (Avg Revenue/Net Income not disclosed) prevents informed ROI analysis and suggests either poor performance or franchisor non-compliance
  4. 04HIGHMultiple TCPA litigation cases indicate systemic compliance issues with marketing practices that could result in franchisor liability passed to franchisees
  5. 05MEDUnprotected territory means unlimited local competition from other BH&G agents and competing franchises, directly limiting revenue potential
  6. 06HIGHParent company merger litigation (Anywhere Real Estate + Compass 2026) creates uncertainty about franchisor stability, support, and strategic direction
  7. 07MINORWide investment range ($33,970–$456,600) suggests highly variable franchisee profitability and unclear cost structures

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.