Bottom line
- Total investment $19K – $195K including a $18K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 11 loans (below the industry average).
- System contracting at -16.2% 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 World® unit return on the cash you put in?
Unlevered ROIC · per unit
95%
Above typical band (30–60%)
Overview
About
Franchisees operate real estate brokerage offices under the Realty World brand, recruiting and managing sales representatives who list and sell residential properties. Revenue is generated through commissions on property transactions, with franchisees paying royalties based either on 4% of gross revenue or a per-rep fee structure ($74/sales representative). Day-to-day operations include agent recruitment, training, compliance, marketing, and lead generation.
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 · 8 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 World presents HIGH RISK due to declining unit growth, absent financial disclosure, trademark litigation history, unprotected territories, and opaque unit economics that prevent proper due diligence.
Score breakdown · what drove the 64 / 100 rating
- 01MINORUnit count declining 12.7% YoY (124 units) indicates contracting franchise system with potential sustainability issues
- 02MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents realistic ROI assessment and suggests weak performance data
- 03HIGHHigh-profile litigation (2016 breach of master license agreement and trademark infringement) signals operational/legal complexity despite 2018 settlement
- 04MINORUnprotected territory creates direct competition risk between franchisees within same market
- 05MINORWide investment range ($18.6K–$195K) with unclear cost drivers and no transparent average unit economics
- 06MINORRoyalty structure ($74/rep minimum) may incentivize under-reporting of sales representatives or create accounting disputes
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Realty World® · FDD (2025) PDF