Bottom line
- Total investment $33K – $447K including a $25K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- 17 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 ERA Real Estate unit return on the cash you put in?
Unlevered ROIC · per unit
39%
In Yale's "attractive" band (30–60%)
Overview
About
ERA Real Estate franchisees operate residential real estate brokerage offices, managing agents who list and sell properties, handling client transactions, and generating revenue through buyer-broker commissions. Day-to-day operations include recruiting and training agents, managing listings, closing transactions, and remitting 6% royalties to ERA on gross revenues while navigating increasingly complex commission structures under regulatory scrutiny.
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 · 23 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
ERA Real Estate presents high-risk investment characteristics: a shrinking franchise network, hidden financial performance metrics, active antitrust litigation threatening the business model, unprotected territory, and documented franchisor-franchisee disputes.
Score breakdown · what drove the 63 / 100 rating
- 01MINORDeclining unit count (-1.3% YoY) signals system contraction and potential franchisee dissatisfaction
- 02MEDNo disclosed average revenue or net income (missing FTC Item 19) prevents accurate ROI assessment and suggests underperformance
- 03MEDMultiple active antitrust class actions (Moehrl, Burnett, etc.) regarding commission practices create regulatory and reputational risk to franchisees
- 04MINORUnprotected territory exposes franchisees to direct competition from other ERA licensees and internal cannibalization
- 05MINORPending and resolved contract disputes with former franchisees indicate potential franchisor-franchisee relationship issues
- 06MEDHigh investment range ($33K-$447K) combined with 6% royalty on undisclosed revenues creates profitability uncertainty
- 07HIGHTrademark infringement litigation suggests brand IP vulnerabilities that could affect franchisee operations
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
ERA Real Estate · FDD (2024) PDF