Motto MortgageFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $56K – $240K
- 33rd pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- N/A
- Units
- 171
- 54th pct Real Estate
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 249 to 171 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $56K – $240K including a $35K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 88/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Motto Franchising, LLC
- Parent company
- RE/MAX, LLC
- Predecessor
- is Full House Mortgage Connection
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 5075 South Syracuse Street, Denver, Colorado 80237-2712
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $13.4M
- vs $13.8M prior year
Affiliated brands
- Motto Marketing Fund
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Motto Mortgage franchisees operate as mortgage loan officers/originators, sourcing residential mortgage clients, processing applications, and closing loans. Franchisees leverage the Motto brand (owned by parent Guaranteed Rate) for branding and lead generation but primarily operate as independent loan officers with significant client acquisition responsibility. Revenue depends entirely on mortgage origination volume and interest rate environment.
- CEO
- Victor Lombardo
- Headquarters
- CO
- Founded
- 2016
- FDD year
- 2025
- States available
- 40
FDD Item 7 · 2025 filing · 15 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
- Better than avg vs category
- Liquid capital req'd
- $10K – $20K
- Better than avg vs category
- Franchise fee
- $20K – $35K
- Better than avg vs category
- Royalty
- $2,500 plus 25 BPs per transaction per month
- Ad fund
- $350 per month
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $3K |
| Renewal fee | $50 |
| Inventory (initial) | $500 – $500 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Real Estate averages
How Motto Mortgage Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 171
- Opened
- 21
- Last reporting year
- Closed
- 76
- Turnover rate
- 44.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -25.0%
- Net unit change last year
- 3-yr CAGR
- -31.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Motto Mortgage's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
5 case reference(s): 4 pending, 2 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 88 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 5 years |
| Territory type | address-only |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 4 |
View Item 3 litigation summary
5 case reference(s): 4 pending, 2 settled.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- 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
98 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 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 249 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 F-grade franchise with a risk score of 88 out of 100, 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.
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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.