COUNSELOR

Item 7 lays out the initial investment range of $22,850 to $105,700, scaling with territory size and population—far below many brokerage peers that hit $200K+. The franchise fee tops at $15,000 for larger territories (down to $7,500 for smaller ones), with ongoing costs dominated by advertising at $60 per agent monthly in the Twin Cities metro or $25 elsewhere, plus $175/hour training and tech fees like website/mobile apps (detailed in Item 6). No royalties mean your revenue from agent commissions stays yours, but the per-agent model scales with hiring success—risky if recruitment lags in a competitive market. Absent Item 19, there's no validated revenue or profit data, forcing reliance on your projections; for context, similar brokerages often see $500K+ gross per office, but variability is huge.

System health signals caution: only 5 franchise locations versus 6 corporate, with just 1 projected new unit in 2025, suggesting stagnation over expansion. This micro-franchise (headquartered in Coon Rapids, MN) may appeal for semi-absentee operators leveraging licensed agents, but low unit count hints at unproven scalability or market saturation challenges. Terminations or transfers aren't flagged prominently, yet the tiny footprint amplifies due diligence needs—perfect for experienced brokers eyeing low-overhead entry, but a pass for growth seekers without direct FDD validation.