Bottom line
- Total investment $36K – $734K including a $20K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 25 loans (below the industry average).
- 13 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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 Coldwell Banker Commercial® unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Overview
About
Franchisees operate commercial real estate brokerage offices under the Coldwell Banker Commercial brand, generating revenue through buyer/seller commissions, tenant/landlord leasing, and property management services. Day-to-day operations involve recruiting and managing sales agents, marketing commercial properties, servicing client relationships, and maintaining compliance with local/federal real estate regulations.
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 · 35 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Coldwell Banker Commercial presents moderate-to-high risk due to absent financial disclosures, significant pending litigation (antitrust/commission disputes), slow unit growth, unprotected territory, and regulatory scrutiny—making it difficult to validate ROI or franchisee viability.
Score breakdown · what drove the 54 / 100 rating
- 01MINORNo Item 19 financial performance disclosure—cannot validate average revenue or profitability claims
- 02MEDFive pending class actions involving antitrust and buyer-broker commission disputes create systemic legal uncertainty and potential regulatory liability
- 03MINORSlow unit growth (6.2% YoY) with only 139 locations suggests market saturation, franchisee underperformance, or brand weakness in commercial real estate segment
- 04MINORUnprotected territory means franchisees compete directly with other CBC franchisees and company-owned offices for the same clients
- 05MINORTiered royalty structure (6% up to $1M, then 3%) incentivizes franchisees to cap growth artificially to avoid higher tax burden
- 06MINORMultiple trademark infringement cases and regulatory proceedings (HUD, FTC, Washington AG) indicate compliance and brand integrity risks
- 07MINORModerate-to-high initial investment ($35.5K–$733.5K) with no performance benchmarks to justify cost
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Coldwell Banker Commercial® · FDD (2024) PDF