Integra Realty Resources Franchise

Financing Details

Integra Realty Resources, Inc. does not offer direct or indirect financing for expenses such as site acquisition, construction, remodeling, equipment, fixtures, opening inventory, or operations. However, Integra Realty Resources, Inc. may, from time to time, accept a promissory note for up to $30,000 to help finance a portion of the initial licensing fee. These promissory notes typically involve principal payments in monthly installments over two years, with a simple interest rate of up to 8% (which increases to 12% if the franchisee defaults). While no security agreement is required, owners, shareholders, and their spouses may be required to guarantee the note. Franchisees can prepay the note at any time without penalty. In case of default, Integra Realty Resources, Inc. can accelerate the amounts due, charge a higher interest rate and a $1,000 one-time penalty, collect attorneys' fees and costs, and terminate the Member Services Agreement.

Litigation Summary

Integra Realty Resources, Inc. currently has one pending lawsuit. The case, Mission Valley Bank vs. Integra Realty Resources, Inc., et al, was filed on December 4, 2023, in the Circuit Court of Cook County, Illinois. In this lawsuit, a bank client of a former franchised Chicago office is suing Integra Realty Resources, Inc. under an agency theory, claiming that Integra Realty Resources, Inc. should be held responsible for the work product of that former office. The plaintiff is seeking damages exceeding $1,000,000. Integra Realty Resources, Inc.'s motion to dismiss was rejected in April 2024 due to the existence of factual issues, and discovery in the case is currently in process.

Renewal Conditions

To renew their Integra Realty Resources, Inc. franchise agreement, franchisees must notify Integra Realty Resources, Inc. in writing of their desire to renew between six and twelve months before the initial term ends, and secure Integra Realty Resources, Inc.'s written approval within 120 days of that notice. Franchisees must not be in default of their agreements and must have complied with all terms throughout the initial period, though they are allowed to have cured breaches up to twice for the same provision. All monetary obligations to Integra Realty Resources, Inc. must be satisfied, and the franchisee must have diligently developed their office to its full potential. Franchisees will need to authorize Integra Realty Resources, Inc. to conduct consumer reports and background checks, execute Integra Realty Resources, Inc.'s current Member Services Agreement, and sign a general release of claims against Integra Realty Resources, Inc. Additionally, the franchisee must submit an acceptable five-year business plan and other due diligence materials, provide current organizational documents, have their Adjusted Gross Revenues confirmed by an internal audit for the prior calendar year, and comply with Integra Realty Resources, Inc.'s current qualification and training requirements.

Staffing Notes

Integra Realty Resources, Inc. estimates that an average office requires staffing for the franchisee (acting as Senior Managing Director), ten full-time appraisers, and one administrative assistant. Franchisees need to have sufficient capital to cover general operating expenses and salaries for approximately these ten appraisers and one administrative person during the initial three-month phase. Each office is required to have at least one employee who is a Member of The Appraisal Institute. The Senior Managing Director, who must also hold an MAI designation and have at least five years of related business experience, is responsible for overseeing the operations of the local office and managing the individual appraisers. All employees of the local offices must participate in and complete the training programs and seminars offered by Integra Realty Resources, Inc. in accordance with the Manual.