Realty Executives

Item 7 lays out a wide initial investment range of $52,700 to $430,500, covering everything from office setup to marketing, with a $35,000 franchise fee upfront. Ongoing costs bite via 6% royalty on monthly sales commissions (Flex model hits a $600 minimum service fee), plus $325 per salesperson for marketing, territory fees over $200 monthly, $375 base tech, and $250-500 insurance. No Item 19 means no disclosed revenue or earnings data, forcing buyers to dig elsewhere for profit potential—especially critical in commission-driven real estate where market cycles swing hard.

The system's 258 locations mark a -9% drop from 288 in 2023 to 262 in 2024, with 38 terminations signaling churn, often tied to Item 20 breaches like unmet quotas or non-compete violations in litigation notes. Seven SBA loans averaging $157,571 hint at financing feasibility but low volume suggests limited appeal. Prospective buyers must probe current franchisee satisfaction, local market saturation since 1987 franchising, and how Phoenix HQ's Outlier Holdings navigates post-pandemic shifts—key to gauging if this 100% model delivers sustained edge over independents.