VALBRIDGE PROPERTY ADVISORS FRANCHISING SYSTEM, LLC

Item 7 lays out the initial investment range of $69,914 to $163,529, covering franchise fee ($25,000), real estate ($0-$50,000), equipment ($2,500-$10,000), and working capital ($10,000-$25,000). Ongoing fees are unusually structured: a $27,500 annual base royalty regardless of revenue, plus 3.5% on adjusted gross revenue exceeding $725,000, data access fees ($0-$250/month), per-seat database licenses ($320-$400/month), and a $2,000 annual meeting fee. No Item 19 disclosure means no revenue or profit benchmarks, forcing buyers to rely on unverified seller claims or industry averages for closely held business valuations— a red flag in a high-skill, low-unit-volume model.

System health shows strain: 43 terminations and 43 non-renewals over three years suggest widespread exits, possibly tied to the settled litigation where a former franchisee alleged interference with sales and fiduciary breaches. Yet Item 20 projects 45 new units in 2024, hinting at aggressive recruiting despite contraction. For a real estate services play, this mix demands scrutinizing territory protection and support quality before committing—the low entry cost tempts, but escalating fees and exit risks could erode returns fast.