Motto Mortgage Franchise Cost, Revenue & Review 2026
- Investment
- $56K – $240K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (3)
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. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $56K – $240K
- 38th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- Set by a formula
- 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 median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict D (Below average), verdict score 33/100 (higher is better).
- GROWTHNegative: net -57 franchised outlets in the latest year (21 opened, 31 closed); 11 signed but not yet open (Item 20).
- 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
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- RE/MAX Holdings, Inc.
- FDD Item 1, page 9 of the 2025 FDD
- 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).
Same owner · FDD Item 1, page 9
1 other brand on this site name RE/MAX Holdings, Inc. as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 11% above 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Motto Mortgage unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Motto Mortgage Compares
Category median of published Real Estate brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 32
- Not renewed
- 13
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 11
- 0.06 per open outlet · Item 20 Table 5
- Projected new
- 42
- Franchisor's next-year forecast
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).
Where the owners are · Item 20 owner list
110 current owners across 28 states.
- TX 25
- FL 10
- IL 7
- NV 6
- AR 5
- CO 5
- GA 5
- OH 5
- PA 5
- TN 5
- CA 3
- NJ 3
- +16 more states
Counts only, from the list the franchisor prints in Item 20; 185 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (3)
- Insufficient SBA coverage: 3 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (3)
- 5-yr charge-off
- Under 10 loans (3)
- 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)
Subject: the franchisor is a named party (plaintiff).
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)
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.
ⓘ 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 | No territory protection |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Motto Mortgage?
Motto Mortgage is franchised by Motto Franchising, LLC. Its parent company is RE/MAX, LLC. The ultimate parent named in the FDD is RE/MAX Holdings, Inc.. Source: FDD Item 1, 2025 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.