FranchiseVerdict
United Real Estate logo
FV-02851·MODERATEExcellent81

United Real Estate

Formerly known as Five Star Bath Solutions

Real EstateFranchising since 2013Website
Investment
$145K – $386K
90th pct Real Estate
Avg revenue
32nd pct Real Estate
Royalty
Units
90
49th pct Real Estate
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $145K – $386K including a $35K franchise fee.
  • 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 135 loans (below the industry average).
  • No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Five D I, LLC
Parent company
United Real Estate Subsidiary Holdco, LLC
Incorporated in
Delaware
HQ
2820 N.W. Barry Road, Kansas City, Missouri 64154
Auditor
Mayer Hoffman McCann P.C.
Audited financials
Franchisor revenue
$509.8M
vs $490.1M 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 United Real Estate 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: $145K–$386K
Working capital
$
FDD reports $100K–$150K

Unlevered ROIC · per unit

33%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$128K
EBITDA margin
17.0%
Total invested
$390K
Payback
37 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 who conduct residential buy/sell transactions and lease agreements. Revenue flows from agent affiliation fees ($45/month per agent), per-transaction commissions ($75 per buy/sell side, $45 per lease), and franchisor support services. Daily operations involve agent recruitment, compliance management, transaction processing, and client relationship management.

CEO
M. Daniel Duffy
Founded
2015
FDD year
2024
States available
27

Item 7 · what it costs

The Vitals

Total investment
$145K – $386K
All-in to open one unit
Liquid capital
$100K – $150K
Cash you must have on hand
Franchise fee
$35K
Royalty
Monthly Agent Affiliation Fee: $45 per Agent; Monthly Rea…
Ad fund
0.0%
typical 3–5%

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
90
Opened
1
Last reporting year
Closed
2
Turnover rate
2.2%
Company-owned
18
Corporate units in the system
% franchised
80%
vs corporate-owned
Multi-unit owners
25.0%
Net growth (yr3)
-1.4%
Net unit change last year
3-yr CAGR
+2.9%
Compounded over last 3 years
2022
72+1
Franchised units
2023
73
Franchised units
2024
70
Franchised units

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

Item 20 · 15 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 · 15 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
135
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

64
Risk · 0-100
MODERATE64 / 100

United Real Estate operates a contracting 90-unit franchise system facing five antitrust class actions, undisclosed financials, and no territorial protection, making it a high-risk investment despite moderate initial capital requirements.

Score breakdown · what drove the 64 / 100 rating

  1. 01MINORSystem contracting: 90 units declining 1.4% YoY indicates stagnant/negative growth trajectory
  2. 02MINORFive concurrent putative class action lawsuits alleging antitrust violations create existential legal/reputational risk
  3. 03MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) prevents ROI validation and suggests weak unit economics
  4. 04MINORNo protected territory exposes franchisees to internal competition and cannibalization
  5. 05MINORMonthly per-agent fees ($45) plus transaction fees ($75 buy/sell, $45 lease) create variable cost structure dependent on agent productivity
  6. 06HIGH10-year term is long-duration commitment in litigation-exposed system with declining unit count

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Geographic boundaries
Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
5
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Texas

Item 11

Training & Operations

Classroom training
40 hrs
On-the-job training
0 hrs
POS system
Bullseye Productivity Platform
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

58 numbers

Locked
(239) 732-••••
FL
(317) 255-••••
IN
(478) 397-••••
MS

One-time purchase · CSV download · Validation questions included

FDD download

United Real Estate · FDD (2024) PDF

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