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B64/100FDD 2026

Weichert — Litigation & Risk

Real Estate · FDD Items 3, 4 & 5

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Elevated Risk

6 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
64 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
16
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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
Non-compete
1 yrs
Post-termination restriction on similar businesses
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
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 64/100 rating

Risk Score Breakdown

  1. 01MEDUnit count declined 11.4% YoY (338 units), indicating significant system contraction and potential franchisee failure rate
  2. 02MINORMultiple active class action lawsuits (Gibson, Batton, 1925 Hooper) related to NAR antitrust conspiracy with uncertain liability exposure for franchisees
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents assessment of franchisee profitability and ROI on $77k-$360k investment
  4. 04MINORUnprotected territory creates direct competition risk from other Weichert franchisees in same geographic area
  5. 05MINORMinimum monthly royalty structure (6% or minimum, whichever is greater) could strain cash flow during slow periods
  6. 06HIGHRecent litigation settlements (TCPA violation) and Washington State 'no poaching' investigation signal compliance and employment law risks
  7. 07MINORShrinking franchise system raises questions about brand support, marketing effectiveness, and long-term viability

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.