Real ProducersFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A REAL PRODUCERS franchise requires a total initial investment of $2K – $12K, including a $735 franchise fee and an ongoing 20.0% royalty[2]. 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
- $2K – $12K
- 0th pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- 20.0%
- 50th pct Real Estate
- Units
- 153
- 53rd pct Real Estate
- SBA default
- N/A
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
Bottom line
- Total investment $2K – $12K including a $735 franchise fee, 20.0% ongoing royalty.
- Item 19 discloses "Average Yearly Commission Payments" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict F (Bottom Quintile) with a risk score of 84/100.
- System growing at 15.2% CAGR over 3 years with 153 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- N2 Franchising, Inc.
- CEO title
- Chief Executive Officer and President
- JP Hamel
- CEO experience
- 2025 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 9151 Currency Street, Irving, Texas 75063
- Auditor
- A&G LLP
- Audited financials
- Franchisor revenue
- $77.8M
- vs $77.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Real Producers franchisees typically publish local community/business magazines or digital publications, generating revenue through advertising sales and subscriptions. Day-to-day operations include editorial content sourcing, advertiser relationship management, production/distribution logistics, and circulation growth. Revenue depends entirely on advertising volume and rates, which franchisees must negotiate and secure in their assigned markets.
- CEO
- JP Hamel
- Headquarters
- TX
- Founded
- 2016
- FDD year
- 2025
- States available
- 46
FDD Item 7 · 2025 filing · 10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $735 | $735 | |
| Office Furniture & Equipmentnot refundable | $0 | $3K | |
| Computer Hardware & Softwarenot refundable | $0 | $3K | |
| Office Supplies and Stationerynot refundable | $90 | $125 | |
| Insurance Coverage (1 year)not refundable | $400 | $650 | |
| Initial Training Expensesnot refundable | $0 | $1K | |
| Attorney and Professional Feesnot refundable | $0 | $2K | |
| Government Licenses and Permitsnot refundable | $0 | $500 | |
| Entity Formationnot refundable | $100 | $500 | |
| Additional Funds (for first 3 months of operation)not refundable | $600 | $1K | |
| Total initial investment | $2K | $12K |
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
- $2K – $12K
- Better than avg vs category
- Liquid capital req'd
- $600 – $1K
- Better than avg vs category
- Franchise fee
- $735
- Better than avg vs category
- Royalty
- 20.0%
- percentage · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 20.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 20.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $735 |
| Total fee load | 20.0% of rev |
Financial Performance
This brand's FDD disclosed "Average Yearly Commission Payments" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Real Estate averages
How Real Producers Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 153
- Opened
- 54
- Last reporting year
- Closed
- 33
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 21.6%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Multi-unit owners
- 25.0%
- Net growth (yr3)
- +14.3%
- Net unit change last year
- 3-yr CAGR
- +15.2%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 9
- Transfer rate
- 5.9%
- Owners selling to other franchisees
- Continuity rate
- 81.3%
- Units that stayed open
- Termination rate
- 0.7%
- Franchisor-initiated terminations
- Ceased ops
- 20.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 39 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Non-transparent financial reporting, regulatory compliance issues, unorthodox royalty structure, and territorial vulnerability create moderate-to-high execution risk despite low entry cost.
Litigation (Item 3)
Two administrative actions disclosed involving affiliate Neighborhood Networks Publishing, Inc. (now The N2 Company): (1) California Department of Financial Protection and Innovation (Order I.D. 337865) - alleged violations of California Franchise Investment Law for offering/selling franchises without required disclosure documents prior to 2016 registration. Settled October 2020 via Consent Order requiring cease and desist and $10,000 reimbursement for investigative costs. (2) Washington Department of Financial Institutions Securities Division (Order No. S-18-2456-18-CO01) - alleged violations of Washington Franchise Investment Protection Act for offering/selling franchises without disclosure documents and making unauthorized financial performance representations. Settled April 2019 via Consent Order requiring compliance, cease and desist, and $4,000 reimbursement for investigative costs. Neither party agreed with findings but settled to resolve matters.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · A&G LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 84 / 100 rating
- 01MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment
- 02HIGHRegulatory litigation involving affiliate for illegal franchise sales in two states signals compliance issues within corporate structure
- 03MINOR20% royalty on advertising value is unusual metric—difficult to audit and creates earnings ambiguity vs. standard % of gross revenue
- 04MINOROnly 14.3% YoY unit growth with 153 total units suggests flat/stagnating system
- 05MINORNo protected territory creates direct competition risk between franchisees within same market
- 06MINORLow franchise fee ($735) relative to total investment range ($1,925-$11,910) indicates unclear cost breakdown and potential hidden expenses
- 07MINORShort 3-year term with no renewal protections limits franchisee security and recoupment window
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 | 3 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | non_exclusive |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | Yes |
| Arbitration location | Irving, Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 2 |
View Item 3 litigation summary
Two administrative actions disclosed involving affiliate Neighborhood Networks Publishing, Inc. (now The N2 Company): (1) California Department of Financial Protection and Innovation (Order I.D. 337865) - alleged violations of California Franchise Investment Law for offering/selling franchises without required disclosure documents prior to 2016 registration. Settled October 2020 via Consent Order requiring cease and desist and $10,000 reimbursement for investigative costs. (2) Washington Department of Financial Institutions Securities Division (Order No. S-18-2456-18-CO01) - alleged violations of Washington Franchise Investment Protection Act for offering/selling franchises without disclosure documents and making unauthorized financial performance representations. Settled April 2019 via Consent Order requiring compliance, cease and desist, and $4,000 reimbursement for investigative costs. Neither party agreed with findings but settled to resolve matters.
Items 10, 11
Training & Operations
- Classroom training
- 13 hrs
- On-the-job training
- 0 hrs
- Training location
- At franchisor's location and on-site at restaurant
- POS system
- Publisher Hero CRM
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Publisher Hero CRM
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
REAL PRODUCERS · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a REAL PRODUCERS franchise?
The total investment to open a REAL PRODUCERS franchise ranges from $2K – $12K, with an initial franchise fee of $735. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do REAL PRODUCERS franchise owners earn?
REAL PRODUCERS 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 REAL PRODUCERS's franchise failure rate?
SBA 7(a) loan charge-off data is not available for REAL PRODUCERS (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 REAL PRODUCERS franchise locations are there?
As of their most recent FDD filing, REAL PRODUCERS has 153 total units in the United States, including 132 franchised units and 1 company-owned units. 54 new units were opened in the latest reporting year.
Is REAL PRODUCERS a good franchise to buy?
FranchiseVerdict rates REAL PRODUCERS as a F-grade franchise with a risk score of 84 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.