Realty Executives Franchise Cost, Revenue & Review 2026
- Investment
- $53K – $431K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (5)
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. 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: B (Above 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
- $53K – $431K
- 35th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- Not extracted
- Units
- 258
- 69th 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 $53K – $431K including a $18K 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 B (Above average), verdict score 46/100 (higher is better).
- GROWTHNegative: net -29 franchised outlets in the latest year (9 opened, 38 closed) (Item 20).
- FLAG38 units terminated last reporting year (14.7% of the system). Ask existing franchisees why.
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
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- Outlier Holdings LLC
- FDD Item 1, page 8 of the 2025 FDD
- 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
- $5.3M
- vs $5.6M prior year
Same owner · FDD Item 1, page 8
1 other brand on this site name Outlier Holdings LLC 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
- 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 82% 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
- Middle 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
REALTY EXECUTIVES 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 REALTY EXECUTIVES 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.
Fee burden
Total ongoing fee load of 6.0% — below the Real Estate median of 7.5%.
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 -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 medians
How Realty Executives 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
- 258
- Opened
- 9
- Last reporting year
- Closed
- 38
- Terminated
- 38
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 14.7%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 38
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
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.
Where the owners are · Item 20 owner list
250 current owners across 29 states; 20 former (terminated, transferred or not renewed) listed separately.
- AZ 51
- CA 24
- NJ 18
- TN 18
- TX 18
- WI 16
- MO 12
- FL 11
- IL 11
- MI 9
- MA 8
- PA 7
- +17 more states
Counts only, from the list the franchisor prints in Item 20. 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 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
- Under 10 loans (5)
- Insufficient SBA coverage: 5 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 (5)
- 5-yr charge-off
- Under 10 loans (5)
- 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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
9 disclosed cases: 1 class-action antitrust suit naming REI as co-defendant (stayed as to REI); several franchisor-initiated collection/breach suits against former franchisees (Gallery Properties, BCC Mountain Resorts, Whaley Realty, Realty Executives Lifestyle Group, Struzan Holdings, IBJ Inc., Devonshire Western Canada, FJM Corporation) mostly resulting in default judgments or settlements in REI's favor.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 46 / 100 verdict
- 01HIGH9 litigation matters incl. antitrust class action (stayed as to REI)
- 02MINORNo Item 19 disclosure
- 03MINOROffset: 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 | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory sizeℹ | Geographic area |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 19 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 9 |
View Item 3 litigation summary
9 disclosed cases: 1 class-action antitrust suit naming REI as co-defendant (stayed as to REI); several franchisor-initiated collection/breach suits against former franchisees (Gallery Properties, BCC Mountain Resorts, Whaley Realty, Realty Executives Lifestyle Group, Struzan Holdings, IBJ Inc., Devonshire Western Canada, FJM Corporation) mostly resulting in default judgments or settlements in REI's favor.
Items 10, 11
Training & Operations
- Classroom training
- 11 hrs
- On-the-job training
- 0 hrs
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- 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
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 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 REALTY EXECUTIVES?
REALTY EXECUTIVES is franchised by REALTY EXECUTIVES INTL. SVCS. LLC. Its parent company is New REI Holdings, LLC. The ultimate parent named in the FDD is Outlier Holdings LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the REALTY EXECUTIVES 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 REALTY EXECUTIVES FDD and qualifies whose outlets they describe.
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 B-grade franchise with a verdict score of 46 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
Are you the franchisor?
If you represent REALTY EXECUTIVES, you can request corrections or provide updated information.
Other Real Estate franchises
Compare similar franchise opportunities in the Real Estate category
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.