Motto Mortgage Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Motto Mortgage is a mortgage-brokerage franchise from the RE/MAX family that helps homebuyers shop loans across multiple lenders. Franchisees run a local brokerage staffing loan originators and connecting borrowers to wholesale lenders.
FranchiseVerdict summary · 2026
A Motto Mortgage franchise requires a total initial investment of $56K – $240K, including a $35K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $56K – $240K
- 37th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 171
- 63rd pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $56K – $240K including a $35K franchise fee.
- RETURNSFY2024 consolidated total revenue (in thousands): continuing franchise fees $10,751K, Marketing Fund fees $896K, franchise sales and other revenue $2,139K. Net loss of $(2,029)K. Audited by Ernst & Young LLP (report dated April 4, 2025) for FY2024/2023; KPMG LLP audited FY2022.
- RISKVerdict D (Below average), verdict score 33/100 (higher is better).
- FLAG32 units terminated last reporting year (18.7% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Motto Franchising, LLC
- Parent company
- RE/MAX, LLC
- Ultimate parent
- RE/MAX Holdings, Inc.
- Predecessor
- Full House Mortgage Connection, Inc.
- Prior franchisor entity
- CEO title
- President of Mortgage Services
- Victor Lombardo
- Incorporated in
- DE
- HQ
- 5075 South Syracuse Street, Denver, Colorado 80237-2712
- Auditor
- Ernst & Young LLP (2024, 2023); KPMG LLP (2022)
- Audited financials
- Franchisor revenue
- $13.8M
- vs $13.4M prior year
Affiliated brands
- Motto Marketing Fund
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Victor Lombardo
- Headquarters
- CO
- Founded
- 2016
- FDD year
- 2025
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost runs 31% below the typical real estate franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Office Set-Up/Improvementsnot refundable | $1K | $4K | |
| Furniture, Fixtures and Equipmentnot refundable | $2K | $2K | |
| Real Estate/Rentnot refundable | $500 | $4K | |
| Security Depositnot refundable | $500 | $1K | |
| Computer System and Telephonenot refundable | $2K | $4K | |
| Licenses and Permitsnot refundable | $200 | $3K | |
| Local Advertisingnot refundable | $0 | $800 | |
| Professional Feesnot refundable | $2K | $9K | |
| Signagenot refundable | $500 | $1K | |
| Opening Inventory and Suppliesnot refundable | $500 | $500 | |
| Education Expenses (out-of-pocket costs for 2 people)not refundable | $2K | $4K | |
| Insurancenot refundable | $1K | $3K | |
| Net Worth Maintenance Costnot refundable | $0 | $150K | |
| Additional Funds - 4 monthsnot refundable | $10K | $20K | |
| Total initial investment | $56K | $240K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $56K – $240K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $20K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- $2,500 per month flat fee plus 25 basis points per closed…
- Ad fund
- $350/month allocated from Fixed Royalty Component to Mark…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $2,500/month fixed component plus 25 BPs per transaction; $350/month of fixed component allocated to Marketing Fund |
| Transfer fee | $3K |
| Renewal fee | $50 |
| Inventory (initial) | $500 – $500 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Motto Mortgage did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Motto Mortgage unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
65%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
FY2024 consolidated total revenue (in thousands): continuing franchise fees $10,751K, Marketing Fund fees $896K, franchise sales and other revenue $2,139K. Net loss of $(2,029)K. Audited by Ernst & Young LLP (report dated April 4, 2025) for FY2024/2023; KPMG LLP audited FY2022.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -31.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Real Estate averages
How Motto Mortgage Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 171
- Opened
- 21
- Last reporting year
- Closed
- 31
- Terminated
- 32
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 13
- Term expired, not renewed (per Item 20)
- Turnover rate
- 44.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -31.3%
- Net unit change over 3 years
- 3-yr CAGR
- -31.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 21
- Closed (3yr)
- 31
- Terminated (3yr)
- 32
- Non-renewed (3yr)
- 13
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 28 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $1.6M
- Median loan
- $637K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (3 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Motto Mortgage presents high risk due to sharp unit decline (-25% YoY), active litigation over royalties, undisclosed financials, and an unprotected territory model in a cyclical industry facing headwinds.
Litigation (Item 3)
Franchisor initiated 4 lawsuits against franchisees in fiscal year 2024: (1) breach of franchise and prior settlement agreement including confidentiality/non-disparagement; (2)-(4) suits to collect royalty payments. No actions brought against the franchisor.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP (2024, 2023); KPMG LLP (2022)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 33 / 100 verdict
- 01MEDUnit count declined 25% YoY (171 units), indicating systemic franchisee struggles or exits
- 02MINORFour active lawsuits in 2024 including royalty collection defaults, suggesting franchisee cash flow problems and franchisor-franchisee conflict
- 03MEDNo financial disclosure (Item 19): average revenue and net income undisclosed, preventing ROI validation
- 04MINORUnprotected territory creates direct competition risk and revenue cannibalization within system
- 05MINORHigh per-transaction royalty (25 BPs) plus $2,500 monthly floor creates fixed cost burden regardless of production
- 06MINORMortgage industry volatility and rising rate environment (2023-2024) likely driving unit attrition
- 07MINORFranchise fee ($35,000) relatively low, but combined with royalty structure suggests weak unit economics
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 5 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | CO |
| Litigation count | 4 |
View Item 3 litigation summary
Franchisor initiated 4 lawsuits against franchisees in fiscal year 2024: (1) breach of franchise and prior settlement agreement including confidentiality/non-disparagement; (2)-(4) suits to collect royalty payments. No actions brought against the franchisor.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 0 hrs
- Training location
- Denver, Colorado; online self-paced courses
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor approves
- Franchisor financing
- Offered
- Item 10
- POS system
- Loan Brokering System (LBS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Loan Brokering System (LBS)
Item 20 · call current owners
Franchisee Contacts
295 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Motto Mortgage · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Motto Mortgage franchise?
The total investment to open a Motto Mortgage franchise ranges from $56K – $240K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Motto Mortgage franchise owners earn?
Motto Mortgage does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Motto Mortgage FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Motto Mortgage FDD and qualifies whose outlets they describe.
What is Motto Mortgage's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Motto Mortgage (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Motto Mortgage franchise locations are there?
As of their most recent FDD filing, Motto Mortgage has 171 total units in the United States, including 171 franchised units and 0 company-owned units. 21 new units were opened in the latest reporting year.
Is Motto Mortgage a good franchise to buy?
FranchiseVerdict rates Motto Mortgage as a D-grade franchise with a verdict score of 33 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.