Realty ONE Group: Litigation & Risk
Real Estate · FDD Items 3, 4 & 5
Moderate: Review
3 cases disclosed in FDD Items 3 and 4.
FDD Items 3 & 4
Litigation Metrics
- Cases disclosed
- 3
- Total from FDD Items 3 and 4
- Bankruptcy (Item 4)
- None
- Franchisor or officer bankruptcy
- Verdict score
- 68 / 100
- FranchiseVerdict composite · higher is better
- Rating
- A
- A / B / C / D / F verdict grade
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Charge-off rate is the share of loans that were charged off or settled for less than the full balance.
- Total 7(a) loans
- 9
- Government-backed loans issued
- Charge-off rate
- N/A
- vs 16% franchise average
- 5-yr charge-off rate
- N/A
- Defaults
- N/A
- Loans charged off or defaulted
- Total loan volume
- $1.7M
- Avg loan size
- $184K
- Participating lenders
- 7
FDD Items 5, 6 & 17: What You Give Up
Contract Risk Indicators
- Mandatory arbitration
- Required
- Disputes resolved outside court, limits your legal options
- Jury trial waiver
- Waived
- You give up the right to a jury trial
- Franchisor can compete
- Yes
- Franchisor can open competing locations in or near your territory
- Right of first refusal
- Yes
- Franchisor can match any purchase offer when you try to sell
- Governing law
- California
- State whose law governs disputes. Relevant if you're not based there
Extracted from FDD Item 3
Litigation Detail
Lublin Corporation filed complaint against Realty One Group (defendant) and Janet Tarity in March 2020 alleging violation of Pennsylvania Uniform Trade Secrets Act, breach of contract, and breach of fiduciary duty. Settled November 2022 with Realty One Group and RMX defendants jointly paying $25,000 (franchisor paid $5,000). Washington Attorney General investigation (August 2019) into no-poaching provisions in franchise agreements resulted in Assurance of Discontinuance signed December 16, 2019, requiring removal of no-poach provisions from future and existing franchise agreements.
What drove the 68/100 verdict
Risk Score Breakdown
- 01MINORNegative net worth -$2,733,239
- 02MINORNo Item 19 disclosure
- 03MINOR3 matters incl. WA AG no-poach investigation (resolved)
- 04MINOROffset: $22.3M revenue, $1.54M net income
Severity inferred from FDD text. Not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice. Consult a franchise attorney before signing any franchise agreement.