Keller Williams Realty

What were the specific reasons for the 37 unit closures in 2024, representing a 131% increase over 2023? Can the franchisor provide a breakdown by closure category?

Can you explain the nature of the 15 pending litigation cases and whether any are class action suits or regulatory investigations that could impact the franchise system?

Of the 28 cases where the franchisor was named as defendant, how many involved allegations related to territorial encroachment, earnings claims, or regulatory compliance?

Why is the advertising fund contribution rate of 0.5% substantially lower than the typical 1.0%-3.0% range for real estate franchises, and what specific marketing activities does this funding support?

What training and support programs justify the Support & Training score of 66, which falls below the typical 71.0-78.5 range? Are there plans to enhance these offerings?

Given the low 1-year exit rate of 4.8% versus the 3-year average of 6.4%, are there specific changes in recruitment, support, or territory management that have improved retention recently?

Can you provide examples of the 35 identified termination causes and explain how they differ from the 15 curable versus 20 non-curable defaults mentioned in the termination clause?

What are the 12 renewal conditions required for the single 10-year renewal option, and how does the franchisor determine whether to grant or deny renewal in its sole discretion?

The transfer fee of $2,000 is significantly lower than the typical $5,000-$10,000 range. Are there additional transfer costs or approval processes not reflected in this fee?

How many of the 30 total litigation cases involved disputes over exclusive territory enforcement or allegations of franchisor-caused encroachment?

Can the franchisor explain the substantial gap between the Risk Factors score of 3 (significantly below the typical 38.0-69.0 range) and the litigation volume of 25 cases in 3 years?

What specific measures is the franchisor implementing to address the Investment Costs score of 27, which is substantially below the typical 70.0-78.0 range?

Are there any pending regulatory investigations or litigation that could result in material changes to franchise fees, territory rights, or support obligations?

Given the exclusive territory protection score of 100, have any of the 25 recent litigation cases involved disputes over territory boundaries, encroachment, or assignment restrictions?

What is the average time to resolve the 15 pending cases, and are there any anticipated court dates or settlement discussions that could affect franchise operations?

The renewal conditions count of 12 is above typical ranges. Can you clarify which conditions are non-negotiable versus negotiable, and what percentage of eligible franchisees are typically denied renewal?

How does the franchisor determine whether a default is curable or non-curable, and what is the average outcome of disputes over the 30-day cure period for curable defaults?

Can you provide contact information for recent franchisees who have exited the system in 2024, as well as franchisees who have successfully renewed their agreements?

Given the low non-renewal rate of 0.6% and termination rate of 0.5%, what percentage of the 37 unit closures in 2024 were voluntary versus due to franchisee financial distress?

Are there any ongoing negotiations or proposed amendments to the franchise agreement that would change the 2-year/10-mile non-compete restriction or renewal discretion language?