1 Percent Lists Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$21,870 - $59,560
Franchise Fee
$15,000
Total US Locations
39
Business Summary
1 Percent Lists® Business operates a real estate brokerage business. Using its proprietary marks, copyrights, and system, it offers real estate sales and listing-related products and services, as well as other approved ancillary services. These businesses can operate from a fixed commercial office location or from home offices, and they primarily focus on assisting customers with the purchase or sale of residential and commercial real estate.
Corporate History
1 Percent Lists began its journey as an operating real estate brokerage business, 1 Percent Lists, LLC, established in Louisiana in December 2015. This predecessor entity was responsible for developing the foundational intellectual property and system that underpins the brand. In March 2020, 1 Percent Lists Franchises, LLC was officially formed and commenced offering franchises for the 1 Percent Lists® business model. While 1 Percent Lists Franchises, LLC itself does not operate company-owned businesses, its predecessor and an affiliate, Clayton, LaMulle, Roig Investment, LLC, actively run company-owned 1 Percent Lists® Businesses.
Financial Overview
Investment Range
$21,870 - $59,560
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$15,000
Royalty %
5%
Equipment Costs (Low)
$1,500
Equipment Costs (High)
$10,000
Working Capital
$10,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial health of 1 Percent Lists Franchises, LLC raises some concerns. For the years ending December 31, 2022 and 2023, the company reported negative members' equity, indicating that its liabilities exceeded its assets due to accumulated losses. While 1 Percent Lists Franchises, LLC reported a net income of $47,217 and positive cash flow from operations in 2023, it experienced a net loss of $(186,735) and negative cash flow from operations in 2022. The most recent unaudited financial statements for the three months ending March 31, 2024, also show negative total equity and, more significantly, negative working capital, meaning 1 Percent Lists Franchises, LLC does not have enough current assets to cover its current liabilities. The franchisor itself highlights this in a special risk disclosure, stating that "The franchisor's financial condition, as reflected in its financial statements (see Item 21), calls into question the franchisor's financial ability to provide services and support to you."
Financing Details
1 Percent Lists Franchises, LLC does not offer any direct or indirect financing to its franchisees. This means that franchisees will need to secure all necessary funding for their initial investment and ongoing operations from external sources. Additionally, 1 Percent Lists Franchises, LLC will not guarantee any notes, leases, or other financial obligations that franchisees may incur.
Performance Metrics
Total US Locations
39
Franchised Units
38
Corporate Units
1
Avg Square Footage
600
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
1 Percent Lists Franchises, LLC is currently involved in one ongoing lawsuit. This case, filed on January 14, 2024, by a former franchisee, Jessica Wynne Vogel, in North Carolina, alleges violations of the North Carolina Business Opportunity Sales Law, fraudulent inducement, breach of contract, breach of the implied covenant of good faith and fair dealing, various counts of tortious interference with contracts, and unfair and deceptive trade practices. The lawsuit has just commenced, and the defendants, including 1 Percent Lists Franchises, LLC, dispute the claims and are aggressively defending them. No specific amount of damages has been alleged by the plaintiff.
Bankruptcy History
1 Percent Lists Franchises, LLC has no bankruptcy history to disclose.
Agreement Terms
Initial Term
7 years
Renewal Term
5 years
Renewal Conditions
To renew their 1 Percent Lists® franchise, a franchisee must first be in good standing, having substantially complied with the franchise agreement throughout its term. They must maintain possession of their approved site or secure a new one that meets current standards. The 1 Percent Lists® Business needs to be updated to comply with the franchisor's then-current specifications and standards, and the franchisee must ensure they have an approved broker who meets the franchisor's System Standards. The franchisee is required to pay a Successor Franchise Fee and sign a new franchise agreement along with any ancillary agreements, including general releases. They must also satisfactorily complete any new training and refresher programs required by 1 Percent Lists. The new agreement may have different terms and conditions, and the boundaries of the Target Marketing Area may change, although the Royalty Fee will not exceed what is imposed on other similarly situated renewing franchisees.
Training & Support Program
Franchisor Assistance
1 Percent Lists provides comprehensive support to its franchisees. Before opening, 1 Percent Lists assists with site selection, whether for a home or commercial office, by providing criteria and approving the location. The franchisor sells and delivers the initial Website & Initial Package items and services, including developing the Broker and Agent websites. They offer general suggestions for commercial office design, decor, and layout. Franchisees gain access to the online Manuals, which outline System Standards, and receive an Initial System Training Program. 1 Percent Lists may also offer general guidance in finding and establishing relationships with Real Estate Professionals and optional marketing services. After opening, 1 Percent Lists continues to advise franchisees on business operations based on submitted reports and inspections, providing guidance on System Standards, operating procedures, and methods. This includes advice on purchasing, inventory, supplier use, marketing, employee training, and administrative procedures. The franchisor establishes bookkeeping and accounting policies and offers additional guidance, assistance, and training as requested. Franchisees maintain access to the Manuals (in electronic format) and must comply with periodic modifications to System Standards. 1 Percent Lists may mediate problems among franchisees and inspect business operations to ensure compliance. The franchisor also conducts the remainder of the initial Start-Up Marketing Campaign and offers optional 'Optimization' services and Digital Marketing Services if chosen by the franchisee.
Initial Training Hours
52
Training Location
Covington, Louisiana, or online/remote
Ongoing Support
After opening, 1 Percent Lists franchisees receive ongoing support in several ways. The franchisor advises on business operations based on reports submitted by franchisees and observations from inspections, offering guidance on System Standards, operating procedures, and methods. This guidance covers aspects like purchasing, inventory practices, use of approved suppliers, marketing programs, employee training, and administrative, bookkeeping, and accounting procedures. 1 Percent Lists provides access to its Manuals, often in an online format, which are periodically updated with System Standards. Franchisees are expected to monitor these updates, which may occasionally require additional capital investment or higher operating costs. 1 Percent Lists may also establish bookkeeping and accounting policies through System Standards and furnishes additional guidance and assistance as requested. They conduct periodic inspections, observations, and potentially videotape operations, remove product samples, and interview staff/customers to ensure compliance. Franchisees are also required to attend periodic refresher training courses, typically two to three times per year, and are responsible for the costs associated with training new or replacement personnel. Furthermore, 1 Percent Lists performs optional 'Optimization' services and provides Digital Marketing Services to those franchisees who elect and pay for them.
Franchise Requirements
Ideal Candidate Profile
1 Percent Lists seeks franchisees who are either currently licensed real estate professionals (broker or agent) or are prepared to obtain the necessary licensure to operate a real estate brokerage business. The franchise anticipates that many will be conversion franchises, where existing real estate professionals transition to the 1 Percent Lists system. The franchisee, or one of its owners, must be a duly licensed real estate broker or must hire one to oversee real estate sales and listings. This individual acting as the business manager/broker is required to have substantial experience in managing and operating full-service real estate brokerage businesses, including significant operational responsibilities and prior training in a general manager or similar supervisory role. They must be capable of handling day-to-day management and be actively employed full-time in the business. All candidates, regardless of their prior experience, must successfully complete the initial training program.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
full-time
Territory Type
non-exclusive
Territory Size Requirements
The 1 Percent Lists franchise designates a non-exclusive Target Marketing Area where franchisees are expected to focus at least 90% of their efforts. This area is typically defined by one or more zip codes, with the exact number varying based on factors like population density and commercial/residential buildings. If not mutually agreed upon, the initial Target Marketing Area defaults to a 1-mile radius around the approved site. However, the 1 Percent Lists franchisor generally requires a Target Marketing Area to contain a minimum of 10,000 residential homes (including condos and townhomes). If an approved area falls short of this minimum, the franchisor will expand it to encompass between 10,000 and 12,000 residential homes, which may result in an irregularly shaped territory that includes the original area.
Staffing Notes
The 1 Percent Lists franchise requires its businesses to be managed by a licensed real estate broker who has successfully completed the franchisor's initial training. This broker role can be filled by the franchisee, one of the owners, or a hired broker, in compliance with state regulations. Additionally, at least one owner, holding a minimum of 10% voting securities (or 50% for "Business Managers"), must qualify as a Business Manager. These managers are expected to have substantial experience in operating full-service real estate brokerages, possess day-to-day management authority, be actively employed full-time in managing the business, and complete all mandated training. A licensed real estate broker must be available, either on-site or on-call, during all operating hours, depending on state laws. While a broker-owner is not explicitly required to hire agents, the franchisor emphasizes that licensed real estate agents are crucial for the 1 Percent Lists system. Franchisees are responsible for recruiting, training, and supervising all personnel, including brokers and agents, in accordance with the franchisor's System Standards. All staff must participate in initial and ongoing System Training, and any employees with access to confidential information are required to sign a confidentiality, non-solicitation, and non-competition agreement.