Bottom line
- Total investment $45K – $259K including a $25K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 55/100.
- System contracting at -6.2% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Howard Hanna unit return on the cash you put in?
Unlevered ROIC · per unit
61%
Above typical band (30–60%)
Overview
About
Howard Hanna franchisees operate residential real estate brokerage offices, managing agents who list and sell properties. Franchisees recruit and supervise sales agents, handle client relationships, manage listings, and coordinate transactions while paying royalties on gross receipts. The model relies on local market activity and agent productivity in a cyclical, interest-rate-sensitive industry.
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 · 7 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Opaque financial performance data combined with going concern flag and substantial fixed royalty minimums create material risk; real estate market sensitivity and lack of disclosed franchisee profitability metrics demand extensive validation.
Score breakdown · what drove the 55 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or typical unit economics
- 02HIGHGoing Concern status is FALSE, suggesting potential financial instability or accounting issues at franchisor level
- 03MINORMinimum royalty of $25,000/year creates fixed cost burden regardless of revenue; franchisees hitting $416,667 in AGR break even on 6% rate
- 04MINORWide investment range ($45K–$258.5K) indicates highly variable startup costs and unclear initial capital requirements
- 05MINOR452 units with unknown growth trajectory — no disclosure of unit openings/closures makes it impossible to assess system health
- 06MINORSliding royalty scale heavily incentivizes high-volume operations; smaller franchisees subsidize system through minimum fees
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
44 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Howard Hanna · FDD (2025) PDF