Realty Executives Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Realty Executives is a residential real-estate brokerage franchise. Franchisees run full-service offices recruiting and supporting agents, earning from commissions and per-agent fees.
FranchiseVerdict summary · 2026
A REALTY EXECUTIVES franchise requires a total initial investment of $53K – $431K, including a $18K – $35K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $53K – $431K
- 31st pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- N/A
- Units
- 258
- 62nd pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate avg · 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
- Total investment $53K – $431K including a $18K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average), verdict score 43/100 (higher is better).
- System contracting at -13.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- REALTY EXECUTIVES INTL. SVCS. LLC
- Parent company
- New REI Holdings, LLC
- Ultimate parent
- Outlier Holdings LLC
- Predecessor
- Realty Executives International, Inc.
- Prior franchisor entity
- CEO title
- Chairman and CEO
- Dave Tedesco
- Incorporated in
- Arizona
- HQ
- 4343 E. Outlier Blvd., Suite 123, Phoenix, Arizona 85008
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $5.6M
- vs $5.3M prior year
Overview
About
- CEO
- Dave Tedesco
- Headquarters
- AZ
- Founded
- 2014
- FDD year
- 2025
- States available
- 29
Can you afford it, and what does the money buy?
Entry cost runs 13% above the typical real estate franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $18K | $18K |
| Working capital (3–6 mo) | $10K | $60K |
| Equipment, build-out, other | $25K | $353K |
| Total initial investment | $53K | $431K |
Source: REALTY EXECUTIVES 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $53K – $431K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $60K
- Top 40% of category vs category
- Franchise fee
- $18K – $35K
- Top 40% of category vs category
- Royalty
- $350 per Salesperson (Flat Fee Model) or 6% of aggregate …
- Ad fund
- $325 multiplied by the greater of: (a) your Salesperson C…
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $375 |
| Transfer fee | $10K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Real Estate average of 9.1%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -13.7% 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 averages
How Realty Executives Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 258
- Opened
- 9
- Last reporting year
- Closed
- 38
- Turnover rate
- 29.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -13.7%
- Net unit change over 3 years
- 3-yr CAGR
- -13.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 9
- Closed (3yr)
- 38
- Terminated (3yr)
- 38
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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.
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 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $893K
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- N/A
- limited sample (5 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- 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
9 litigation matters — mostly franchisor-initiated collection/breach suits against former franchisees plus one antitrust class action (stayed as to REI). No Item 19 disclosed, and net unit growth is negative -13.7% with very high turnover 29.5% on 258 units. Financials positive ($2.35M equity, $1.67M net income). Multiple concerns: litigation volume, high turnover, shrinking system.
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 43 / 100 verdict
- 01HIGH9 litigation matters incl. antitrust class action (stayed as to REI)
- 02MINORVery high turnover 29.46% and negative growth -13.7%
- 03MINORNo Item 19 disclosure
- 04MINOROffset: positive equity $2.35M, net income $1.67M
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Geographic area |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 9 |
Items 10, 11
Training & Operations
- Classroom training
- 11 hrs
- On-the-job training
- 0 hrs
- POS system
- PrimeAgent
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PrimeAgent
Item 20 · call current owners
Franchisee Contacts
270 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
REALTY EXECUTIVES · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a REALTY EXECUTIVES franchise?
The total investment to open a REALTY EXECUTIVES franchise ranges from $53K – $431K, with an initial franchise fee of $18K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do REALTY EXECUTIVES franchise owners earn?
REALTY EXECUTIVES 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 REALTY EXECUTIVES's franchise failure rate?
SBA 7(a) loan charge-off data is not available for REALTY EXECUTIVES (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 REALTY EXECUTIVES franchise locations are there?
As of their most recent FDD filing, REALTY EXECUTIVES has 258 total units in the United States, including 258 franchised units and 0 company-owned units. 9 new units were opened in the latest reporting year.
Is REALTY EXECUTIVES a good franchise to buy?
FranchiseVerdict rates REALTY EXECUTIVES as a C-grade franchise with a verdict score of 43 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent REALTY EXECUTIVES, you can request corrections or provide updated information.
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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.