Howard Hanna Real Estate logo

Howard Hanna Real Estate Franchise

Audited Financials
Real EstateEst. 2010Pittsburgh, PA
www.howardhanna.com

Risk Score

Pending analysis

Investment Range

$45,000 - $258,500

Franchise Fee

$25,000

Min Cash Required

$8,000

Total US Locations

452

Business Summary

Howard Hanna Real Estate Associates, LLC sells franchises for the right to open and operate a real estate brokerage business. Howard Hanna Real Estate Associates, LLC franchisees offer traditional real estate brokerage services, such as listing and selling real estate, assisting with real estate acquisitions, and managing referral and third-party relocation businesses. These businesses operate using Howard Hanna's distinctive designs, layouts, color schemes, signs, operational standards, training, and support system.

Corporate History

Howard Hanna Real Estate Associates, LLC was formed as a Pennsylvania limited liability company on October 5, 2010, specifically to offer and sell franchises for Howard Hanna brokerage businesses. The franchisor began offering franchises on October 25, 2010. Its parent company, Hanna Holdings, Inc., has operated Howard Hanna brokerage businesses through various subsidiaries and affiliates since 1958. Prior to the franchisor's formation, a subsidiary of Hanna Holdings, Howard Hanna Real Estate Associates, Inc., licensed the 'Howard Hanna' mark to real estate brokers from 1996 until August 2010.

Financial Overview

Investment Range

$45,000 - $258,500

Franchise Fee (Low)

$25,000

Franchise Fee (High)

$25,000

Minimum Cash Required

$8,000

Royalty %

6%

Equipment Costs (High)

$50,000

Working Capital

$19,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Howard Hanna Real Estate Associates, LLC's financial statements have received a clean, unqualified opinion from its independent auditors, indicating that they present fairly in all material respects. The company's financial notes highlight that it is a wholly owned subsidiary of Hanna Holdings, Inc., and the parent company fully supports its operations. The auditors did not identify any conditions or events that raise substantial doubt about Howard Hanna Real Estate Associates, LLC's ability to continue as a going concern.

Financing Details

Howard Hanna Real Estate Associates, LLC does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any franchisee's notes, leases, or other obligations. Franchisees must arrange their own financing.

Performance Metrics

Total US Locations

452

Franchised Units

45

Corporate Units

407

Avg Square Footage

900

Franchising Since

2010

Agreement Terms

Initial Term

10 years

Renewal Conditions

To renew their franchise agreement, Howard Hanna Real Estate Associates, LLC franchisees must be in full compliance with their existing Franchise Agreement and ensure all amounts owed to the franchisor are paid 180 days before the term expires. They are required to sign the franchisor's then-current form of franchise agreement and related documents, which may include different terms, royalties, fees, and obligations. A renewal fee of $5,000 is due, and the franchisee and its owners must also provide a general release of any claims against the franchisor and its affiliates.

Training & Support Program

Franchisor Assistance

Howard Hanna Real Estate Associates, LLC provides several forms of assistance to its franchisees. Before opening, the franchisor helps with approving the office site and may specify required fixtures, furnishings, and equipment, along with lists of approved suppliers or product specifications. Howard Hanna Real Estate Associates, LLC offers complimentary tuition for the franchisee or Principal Owner and one manager to attend its Hanna Franchise Services Orientation within 90 days of opening, held at their offices, parent company locations, or as webinars. After opening, franchisees are permitted to use Howard Hanna's Marks, copyrights, and proprietary System. The franchisor offers ongoing guidance on operations, including standards, specifications, and administrative procedures, delivered through manuals and other communications. Howard Hanna Real Estate Associates, LLC also indemnifies franchisees for claims related to their authorized use of the Marks or copyrights. The franchisor hosts and maintains the official Howard Hanna website, where the franchisee's business will be listed. Additionally, the franchisor conducts inspections and evaluations to ensure System Standards are maintained. Howard Hanna Real Estate Associates, LLC may also provide customizable websites, technology tools, online training, and access to company meetings and events for sales associates, and a website for each office.

Initial Training Hours

15

Training Location

Franchisor offices in Pittsburgh, Pennsylvania, parent's brokerage offices, or live webinars

Ongoing Support

Howard Hanna Real Estate Associates, LLC provides ongoing operational advice and guidance to its franchisees, which can be delivered through manuals, bulletins, or other communications. The franchisor or its affiliates host and maintain the official Howard Hanna website, where the franchisee's business is listed. Regular inspections and evaluations of the franchisee's office operations are conducted to ensure adherence to System Standards. Additionally, the franchisor may provide sales associates with customizable websites, technology tools, online training, and access to company meetings and events. There are no currently required additional training programs or refresher courses.

Franchise Requirements

Ideal Candidate Profile

Howard Hanna Real Estate Associates, LLC seeks individuals or business entities whose Principal Owner must personally direct the franchise's operations. The Principal Owner is required to dedicate their full time and best efforts to operating the franchise, be present at the office for at least 50% of its operating hours, and successfully complete all required initial and ongoing training programs.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Commercial

Owner Participation

Full-Time

Territory Type

Non-Exclusive

Staff Count

10

Territory Size Requirements

Howard Hanna Real Estate Associates, LLC designates a 'Protected Area' for each franchise, defined as a three-mile diameter circle centered at the franchisee's approved office location.

Staffing Notes

Howard Hanna Real Estate Associates, LLC franchisees are expected to hire, train, and supervise their employees, sales representatives, and agents according to the franchisor's manuals. All personnel must comply with applicable federal, state, and local laws for employment. Each franchise must designate a duly qualified Broker of Record to meet state real estate licensing requirements for direct supervision of brokerage activities. The franchisor may also provide sales associates with customizable websites, technology tools, and online training.