Realty World

What are the primary reasons franchisees cite for closing their units ("ceased other" classification)? Are there common operational, financial, or market-related factors?

Given that 2023 saw 19 closures and 2025 saw 19 closures compared to 13 in 2024, what changed operationally or in the marketplace between these periods?

Your royalty rate of 4.0% is significantly below the typical 5.25-7.0% range. Is this rate permanent or introductory? Are there plans to increase it during renewal?

The technology fee of $39.99 monthly is substantially below typical rates. What specific technology services and tools are included, and could this be increased in renewal?

Your franchise fee of $18,000 is $2,000-$22,000 below the typical range for real estate services franchises. What is included in this fee compared to competitors, and is it adequate to cover your onboarding costs?

Can you provide details on the single litigation case where Realty World was plaintiff? What was the outcome and does it reflect an ongoing issue with franchisees?

Your contract lists 25 termination causes (above the typical 15-20 range). Can you explain which causes are most commonly exercised and under what circumstances?

The renewal conditions specify that franchisees must "remodel and expand the business regardless of cost." How much investment is typically required, and are there alternatives if a franchisee cannot meet this requirement?

With a non-exclusive territory and no encroachment protection, what prevents the franchisor from opening competing units nearby? How many franchisees have experienced this?

The transfer fee of $3,500 is below typical rates. Does this fee cover the franchisor's administrative and training costs for transferring ownership?

What percentage of franchisees renew their agreements at the 5-year mark? Is the $1,500 renewal fee the only cost, or are there additional remodeling/expansion costs?

How many of the franchisees who closed their units in the past 3 years had been in the system for fewer than 5 years? What is the survival rate past the initial term?

Given the System Health score of 13/100 (well below typical), what specific operational challenges is the franchise experiencing, and what turnaround initiatives are underway?

Can you explain how the post-term non-compete clause (2 years, 25 miles) is enforced? Have there been disputes with closed franchisees reopening as competitors?

The dispute resolution clause requires 4 hours of mediation before binding arbitration with no class action or jury trial rights. Why is individual arbitration mandatory rather than class action relief?

Personal guarantees are required from all owners and spouses. If the franchise fails, are owners' personal assets at risk even if the franchisor is partially responsible?

What support and training are provided after the initial setup, given that you have a relatively low royalty rate that may limit corporate resources?

Are there financial reporting requirements or Item 19 sales data from existing franchisees that you can share to validate unit economics?