FranchiseVerdict
Harcourts Real Estate logo
FV-01158·Minimal10

Harcourts Real Estate

Real EstateFranchising since 2011Website
Investment
$151K – $360K
93rd pct Real Estate
Avg revenue
$1.5M
24th pct Real Estate
Royalty
5.0%
13th pct Real Estate
Units
38
28th pct Real Estate
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $151K – $360K including a $25K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $1.5M/year (median $1.1M).
  • SBA loan default rate of 0.0% across 218 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Harcourts Pacific LLC
Parent company
Harcourts International Limited
Incorporated in
California
HQ
660 Newport Center Dr, Suite 320, Newport Beach, CA 92660
Auditor
Baker Tilly US, LLP
Audited financials
Franchisor revenue
$2.5M
vs $2.5M prior year

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 Harcourts Real Estate unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,515,915
Franchisor take · royalty + ad fund
Royaltytyp 6–8%
%
Ad fundtyp 3–5%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $151K–$360K
Working capital
$
FDD reports $30K–$75K

Unlevered ROIC · per unit

89%

Above typical band (30–60%)

0%30–60% Yale band80%
Store EBITDA · annual
$273K
EBITDA margin
18.0%
Total invested
$308K
Payback
14 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Harcourts Real Estate units return on equity?

Edit assumptions

Equity IRR · 5-yr

32.2%

4.03× MOIC

Year-1 DSCR

2.51×

EBITDA ÷ debt service

Equity required

$6.7M

on $16.7M purchase

Total debt

$10.0M

SBA $5.0M + senior + seller note

SBA 7(a) request ($8.3M) exceeds the $5M program cap. Excess capped automatically; backfill via conventional or equity.

Overview

About

Harcourts real estate brokerage offices, which offers general real estate services, relating to the buying, selling, leasing, development, and management of real estate to the general public.

CEO
Benjamin Brady
Founded
2010
FDD year
2025
States available
4

Item 7 · what it costs

The Vitals

Total investment
$151K – $360K
All-in to open one unit
Liquid capital
$30K – $75K
Cash you must have on hand
Franchise fee
$25K
Royalty
5.0%
Gross Revenue · typical 6–8%
Ad fund
0.0%
typical 3–5%

Item 19

Financial Performance

Avg gross sales
$1.5M
Per unit, per year
Median gross sales
$1.1M
Item 19 type
Gross Revenue of existing offices
Sample size
38 units
vs category median 41
Range (low → high)
$113K→$4.9M
Cohort dispersion
Revenue rank24th
vs Real Estate peers
Investment cost rank93th
Lower investment ranks lower (better)
Royalty rate rank13th
Lower royalty = lower percentile (better)
Unit count rank28th
vs Real Estate peers
Risk score rank100th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
38
Opened
0
Last reporting year
Closed
4
Turnover rate
10.5%
Company-owned
0
Corporate units in the system
2023
38-4
Franchised units
2024
42
Franchised units
2025
43
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 3 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 3 states
Not registered

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.

Total loans
218
Loan volume
—
Avg loan
—
Default rate
0.0%
vs <3% typical · system-wide
5-yr default
—

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

—
Risk · 0-100

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
California

Item 11

Training & Operations

Classroom training
39 hrs
On-the-job training
0 hrs
POS system
Harcourts One and Harcourts Cloud
Operating tech stack

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

19 numbers

Locked
(808) 586-••••
HI
(949) 248-••••
CA
(310) 373-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Harcourts Real Estate · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above

Includes AI-generated validation questions · CSV download