FranchiseVerdict
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FV-02108·STRONGExcellent86

Real Property Management

Real EstateFranchising since 2005Website
Investment
$92K – $266K
73rd pct Real Estate
Avg revenue
32nd pct Real Estate
Royalty
Units
423
88th pct Real Estate
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $92K – $266K including a $60K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 179 loans (below the industry average).
  • System growing at 17.5% CAGR over 3 years with 423 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Real Property Management SPV LLC
Parent company
Neighborly Assetco LLC
Incorporated in
Delaware
HQ
1010 North University Parks Drive, Waco, Texas 76707
Auditor
Ernst & Young LLP
Audited financials
Franchisor revenue
$383.2M
vs $451.9M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Real Property Management unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $92K–$266K
Working capital
$
FDD reports $5K–$175K

Unlevered ROIC · per unit

42%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$113K
EBITDA margin
15.0%
Total invested
$269K
Payback
29 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate residential property management services, overseeing tenant placement, rent collection, maintenance coordination, and tenant relations for residential investment properties. Revenue splits between non-maintenance (leasing/admin) and maintenance services, each taxed at different royalty rates. Daily operations involve tenant communication, contractor coordination, compliance with local landlord-tenant laws, and property inspections.

CEO
Michael Anthony Davis
Founded
2004
FDD year
2024
States available
51

Item 7 · what it costs

The Vitals

Total investment
$92K – $266K
All-in to open one unit
Liquid capital
$5K – $175K
Cash you must have on hand
Franchise fee
$60K
Royalty
Greater of (i) 7% of Non-Maintenance Gross Sales plus 3% …
Ad fund
2.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
423
Opened
39
Last reporting year
Closed
5
Turnover rate
1.2%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+8.7%
Net unit change last year
3-yr CAGR
+17.5%
Compounded over last 3 years
2022
423+34
Franchised units
2023
389
Franchised units
2024
360
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 13 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 13 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
179
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

53
Risk · 0-100
STRONG53 / 100

Property management franchise with opaque financials, regulatory/litigation baggage, and ambiguous royalty structure presents moderate-to-high risk despite protected territories and 10-year term.

Score breakdown · what drove the 53 / 100 rating

  1. 01MEDNo Item 19 financial disclosure (avg revenue/net income not disclosed) prevents ROI validation on $91.7k-$266.2k investment
  2. 02HIGHLitigation involving trademark disputes, tenant habitability claims, and FTC/state regulatory actions against parent company affiliates indicate compliance and operational risk
  3. 03MEDDual royalty structure (7% non-maintenance + 3% maintenance OR minimum fee) creates unclear cost burden without disclosed minimum threshold
  4. 04MINORModest unit growth (8.7% YoY on 423 units = ~37 net adds) suggests market saturation or franchisee performance concerns
  5. 05MEDProperty management business model carries inherent tenant liability exposure, evidenced by disclosed habitability claims against managed properties

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Designated population-based territory
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
6
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
42 hrs
On-the-job training
256 hrs
POS system
AppFolio and LeadSimple
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

84 numbers

Locked
(831) 444-••••
CA
(949) 239-••••
CA
(562) 270-••••
CA

One-time purchase · CSV download · Validation questions included

FDD download

Real Property Management · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above