FranchiseVerdict
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FV-02592·MODERATEStandard76

The Agency®

Real EstateFranchising since 2015Website
Investment
$120K – $896K
83rd pct Real Estate
Avg revenue
32nd pct Real Estate
Royalty
6.0%
27th pct Real Estate
Units
91
51st pct Real Estate
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $120K – $896K including a $48K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • System growing at 157.1% CAGR over 3 years with 91 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
The Agency Real Estate Franchising, LLC
Parent company
RealTech Holdings, Inc.
Incorporated in
Delaware
HQ
331 Foothill Road, Suite 100, Beverly Hills, California 90210
Auditor
Holthouse | Carlin | Van Trigt LLP
Audited financials
Franchisor revenue
$3.3M
vs $5.1M prior year

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 The Agency® unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $120K–$896K
Working capital
$
FDD reports $12K–$98K

Unlevered ROIC · per unit

21%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$118K
EBITDA margin
15.8%
Total invested
$563K
Payback
57 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate real estate brokerage offices, recruiting and managing licensed agents to transact residential and commercial property sales. Day-to-day activities include agent recruitment/training, transaction management, marketing, client relationship management, and compliance with local/state real estate regulations. Revenue derives from agent commission splits (typically 50-80% to agents, 20-50% brokerage).

CEO
Mauricio Umansky
Founded
2014
FDD year
2025
States available
25

Item 7 · what it costs

The Vitals

Total investment
$120K – $896K
All-in to open one unit
Liquid capital
$12K – $98K
Cash you must have on hand
Franchise fee
$48K
Royalty
6.0%
Tiered percentage of Gross Revenue · typical 6–8%
Ad fund
1.3%
typical 3–5%
Total fee load
7.3%
vs 9–13% typical

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

Total units
91
Opened
16
Last reporting year
Closed
2
Turnover rate
2.2%
Company-owned
37
Corporate units in the system
% franchised
59%
vs corporate-owned
Multi-unit owners
10.0%
Net growth (yr3)
+35.0%
Net unit change last year
3-yr CAGR
+157.1%
Compounded over last 3 years
2023
54+15
Franchised units
2024
40
Franchised units
2025
21
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 27 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 27 states
Not registered

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.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

High-growth real estate franchise with material litigation history, opaque financials, and territory conflicts presents meaningful investment risk despite no going concern warning.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORNo Item 19 financial disclosure (average revenue/net income) prevents ROI validation despite $119.6k-$896k investment range
  2. 02HIGHSignificant litigation history ($12.2M+ in settlements) including antitrust and disparagement cases suggests operational/compliance vulnerabilities
  3. 03MINORUnprotected territory creates direct competition risk from other Agency franchisees and corporate-owned locations
  4. 04MINORExplosive 35% YoY unit growth (91 units) may indicate unsustainable expansion or market saturation concerns
  5. 05MINORWide investment range ($776.55k spread) suggests inconsistent unit profitability or unclear buildout costs
  6. 06MINORReal estate brokerage model highly dependent on agent recruitment and retention in competitive market

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Physical location restriction
Protected territory
No
Initial term
10 years
Renewal term
5 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
4
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Owner-operator
Optional
Governing law
Delaware

Item 11

Training & Operations

Classroom training
16 hrs
On-the-job training
0 hrs
POS system
BrokerWolf
Operating tech stack

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

64 numbers

Locked
(415) 972-••••
One Sansome Street, Suite
CA
(406) 640-••••
MT
(425) 296-••••
WA

One-time purchase · CSV download · Validation questions included

FDD download

The Agency® · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above