Realty ExecutivesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A REALTY EXECUTIVES franchise requires a total initial investment of $53K – $431K, including a $35K franchise fee. 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
- $53K – $431K
- 30th pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- N/A
- Units
- 258
- 58th pct Real Estate
- SBA default
- 0.0%
- system-wide median varies by category
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
The system contracted 10% year-over-year. Investigate why units are closing.
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.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- 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
- Legal entity
- REALTY EXECUTIVES INTL. SVCS. LLC
- Parent company
- New REI Holdings, LLC
- Incorporated in
- AZ
- 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
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.
- CEO
- Dave Tedesco
- Headquarters
- AZ
- Founded
- 2014
- FDD year
- 2025
- States available
- 29
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $10K | $60K |
| Equipment, build-out, other | $8K | $336K |
| 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
- Better than avg vs category
- Liquid capital req'd
- $10K – $60K
- Better than avg vs category
- Franchise fee
- $18K – $35K
- Better than avg 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.
vs Real Estate averages
How Realty Executives Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 258
- Opened
- 9
- Last reporting year
- Closed
- 38
- Turnover rate
- 14.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -10.1%
- Net unit change last year
- 3-yr CAGR
- -13.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Realty Executives's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 4-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 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
| 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 $35K. 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 F-grade franchise with a risk score of 100 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.