1st Class Real Estate is a real estate brokerage franchise offering both Standard and Virtual Model operations. The system has 101 franchised units with minimal net growth in recent years. The franchise requires a $25,000 initial franchise fee plus $950 training fee, with total investment ranging from $31,050 for Virtual Model to $159,450 for Standard Model. The ongoing fee structure is transaction-based ($150 per closed transaction plus $150 monthly office fee) rather than percentage-based royalties. The franchisor provides limited territory protection (4-mile radius for Standard Model only) and does not provide any financial performance representations. Key concerns include the franchisor's negative members' equity of $(593,324) and required fee deferrals in multiple states due to financial condition.
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Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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