BAbove average55/100FDD 2025
Re/Max: Litigation & Risk
Real Estate · FDD Items 3, 4 & 5
Elevated Risk
6 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 6
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 55 / 100
- FranchiseVerdict composite · higher is better
- Rating
- B
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 306
- Government-backed loans issued
- Charge-off rate
- 14.2%
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- 34 loans
- Loans charged off or defaulted
- Total loan volume
- $128.0M
- Avg loan size
- $418K
- Participating lenders
- 109
FDD Items 5, 6 & 17: What You Give Up
Contract Risk Indicators
- Mandatory arbitration
- Not required
- You retain the right to sue in court
- Jury trial waiver
- Waived
- You give up the right to a jury trial
- Non-compete
- 1 yrs
- Post-termination restriction on similar businesses
- Franchisor can compete
- Yes
- Franchisor can open competing locations in or near your territory
- Right of first refusal
- No
- Franchisor can match any purchase offer when you try to sell
- Governing law
- Colorado
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
No litigation required to be disclosed in Item 3
What drove the 55/100 verdict
Risk Score Breakdown
- 01HIGH13 litigation matters incl. $55M antitrust settlement (Moehrl/Burnett/Nosalek)
- 02MINORParent-level negative equity -$67,773,000 (judge on operations)
- 03MINORNo Item 19 disclosure
- 04MINORNegative net unit growth -9.4%
- 05MINOROffset: $307.7M revenue, $11.3M net income
Severity inferred from FDD text. Not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice. Consult a franchise attorney before signing any franchise agreement.