Bottom line
- Total investment $53K – $431K including a $35K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 71/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- 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
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 REALTY EXECUTIVES unit return on the cash you put in?
Unlevered ROIC · per unit
38%
In Yale's "attractive" band (30–60%)
Overview
About
Realty Executives franchisees operate full-service residential real estate brokerage offices, managing agents who conduct property sales, buyer representation, and customer transactions. Franchisees handle office operations, agent recruitment/training, client relations, and local marketing while paying per-agent or commission-based royalties to the franchisor for brand, systems, and support services.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Realty Executives presents HIGH RISK due to contracting franchise system (10.1% decline), extensive litigation alleging antitrust violations and fee disputes, absent financial disclosures, and structural royalty misalignment favoring the franchisor over franchisee profitability.
Score breakdown · what drove the 71 / 100 rating
- 01MEDUnit decline of 10.1% YoY indicates system contraction and potential franchisee dissatisfaction
- 02HIGHMultiple active litigations including class-action antitrust suit suggests serious franchisor-franchisee relationship problems and potential systemic issues
- 03MINORNo Item 19 (average revenue/income disclosure) prevents validation of earnings claims and ROI viability
- 04MINORFlat-fee model ($350/salesperson) creates misalignment: franchisor profit independent of franchisee success
- 05MINORHigh investment ceiling ($430,500) with declining unit count signals poor market conditions and increased franchisee financial risk
- 06HIGHLitigation involving non-compete/non-solicitation enforcement suggests franchisor aggressively pursues legal action against franchisees
- 07HIGHGoing Concern status listed as 'False' — unclear if this means auditor concerns about franchisor viability exist
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
94 numbers
One-time purchase · CSV download · Validation questions included
FDD download
REALTY EXECUTIVES · FDD (2025) PDF