Iron Valley Real Estate Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$58,500 - $206,500
Franchise Fee
$5,000
Total US Locations
50
Business Summary
Iron Valley Real Estate offers franchises to operate offices that provide full-service residential and commercial real estate brokerage services. These offices operate strictly according to Iron Valley Real Estate's methods and format, using their designated technology, strategies, and techniques to serve retail customers.
Corporate History
Iron Valley Real Estate, LLC was officially organized in Pennsylvania on May 21, 2018. The concept for Iron Valley Real Estate was originally developed in 2013 by an affiliated entity, Annville Group, LLC, in Pennsylvania. This concept aimed to offer a modern, technology-driven real estate brokerage that provided an alternative to high-fee offices and reduced expenses and restrictions common with large franchised firms. Iron Valley Real Estate began offering franchises in September 2018. As of December 31, 2024, the brand has grown to include eight company-owned real estate offices and 44 franchised locations.
Financial Overview
Investment Range
$58,500 - $206,500
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$20,000
Equipment Costs (Low)
$25,500
Equipment Costs (High)
$85,000
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Iron Valley Real Estate's financial condition, as reflected in its financial statements, raises questions about its financial ability to provide services and support to franchisees.
Financing Details
Iron Valley Real Estate does not offer any direct or indirect financing to its franchisees. Franchisees will need to secure their own funding, and Iron Valley Real Estate does not guarantee any loans, leases, or other financial obligations.
Performance Metrics
Total US Locations
50
Franchised Units
44
Corporate Units
8
Avg Square Footage
2,250
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Iron Valley Real Estate has two litigation cases to report. The first case, from March 2019, involved an inadvertent unregistered franchise sale in Virginia where Iron Valley Real Estate failed to provide the required disclosure document. In November 2019, Iron Valley Real Estate settled with the Virginia State Corporation Commission, paying $8,000 in penalties and investigation costs, and offering a $10,000 rescission to the franchisee, who declined it. This case was dismissed in December 2019. The second case is a lawsuit filed by Iron Valley Real Estate on January 23, 2024, in federal court against a former franchisee, Always Be Closing LLC, and its owner. Iron Valley Real Estate alleged breach of contract and defamatory comments. In September 2024, Iron Valley Real Estate secured a default judgment for over $71,000 plus interest, along with attorney's fees and future collection costs, and is currently pursuing recovery of these damages.
Bankruptcy History
Iron Valley Real Estate has no bankruptcy history to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their Iron Valley Real Estate franchise agreement, franchisees must provide written notice at least 180 days before the current term ends and receive approval from Iron Valley Real Estate. They must be solvent and not operating in a manner that endangers public safety or harms the brand. Franchisees must also be in full compliance with all operating requirements, have paid all fees, and not be in breach of their agreement. They are required to sign Iron Valley Real Estate's then-current Renewal Franchise Agreement, which may have substantially different terms, and potentially remodel their office to meet current system requirements. A renewal fee of $5,000 is required, which may be reduced to $2,500 if the franchisee has fully complied with the expiring agreement.
Training & Support Program
Franchisor Assistance
Iron Valley Real Estate provides pre-opening assistance to its franchisees by offering initial training for the franchisee and key employees, providing guidelines for the office's trade dress and furnishings, reviewing and approving the chosen site, granting online access to the Confidential Operations Manual, and authorizing the business name. After the office opens, Iron Valley Real Estate offers ongoing support through phone and email guidance, scheduled training and assistance programs, and periodic site visits to provide sales and administrative assistance. They also notify franchisees of any deficiencies in office repair or appearance, conduct regional and system-wide meetings, integrate franchisee information into the Iron Valley Real Estate website, and may suggest retail prices for services.
Initial Training Hours
28
Training Location
Hershey, PA
Ongoing Support
After the opening of an Iron Valley Real Estate office, franchisees receive ongoing support including guidance by phone and email for operations and management. Iron Valley Real Estate also provides scheduled training and assistance programs, with periodic visits from representatives at no additional cost. Franchisees are notified of any deficiencies in their office's repair, appearance, or cleanliness. There are also regional or system-wide meetings that the Office Manager and at least one Principal Equity Owner are required to attend, for which franchisees pay travel and potentially a registration fee. Additionally, franchisees are given access to the Iron Valley Real Estate website, where their office information is integrated, and Iron Valley Real Estate may suggest retail prices for services.
Franchise Requirements
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Staff Count
1
Territory Size Requirements
Iron Valley Real Estate does not grant an exclusive territory for a single franchise location. If a franchisee enters into an Area Development and Royalty Share Agreement (ADRSA), they receive a non-exclusive right to open additional Iron Valley Real Estate outlets within a specified radius around their first franchised outlet. This development area initially spans a 100-mile radius. After two additional outlets are opened under the ADRSA, the development area radius extends to 150 miles. When the fifth additional outlet is opened, the development area radius further extends to 200 miles around the first franchised outlet.
Staffing Notes
Iron Valley Real Estate requires each franchise location to employ at least one designated Office Manager who will actively participate full-time in the direct management and operation of the office and must have successfully completed Iron Valley Real Estate's initial training. Additionally, Iron Valley Real Estate franchisees must maintain a minimum number of real estate sales agents associated with their office: at least 10 agents within six months of opening, 20 agents by the first anniversary, 30 agents by the second anniversary, and at least 24 agents thereafter for the remainder of the term. Failure to meet these agent requirements may result in a warning, participation in a performance improvement program, or even termination of the franchise agreement if the issue is not cured.