Risk Score
Pending analysis
Investment Range
$48,500 - $124,150
Franchise Fee
$17,000
Total US Locations
126
Business Summary
SVN International PBC offers a franchise to operate a business under the SVN mark and logo, providing commercial real estate brokerage services to the public. This includes services related to the listing, co-listing, offering, selling, purchasing, exchanging, leasing, or renting of commercial real property. SVN International PBC also approves other related services like auction and mortgage loan brokerage services. Franchisees operate their business using SVN International PBC's proprietary system, which includes operating methods, technology systems, and marketing techniques. The business focuses on commercial properties, typically excluding residential properties, but may allow sales of multiple residential units in a common development with prior approval.
Corporate History
SVN International PBC was incorporated on May 18, 2001, as SVN International Corp. The company has offered franchises for commercial real estate brokerage services since March 2002. On January 31, 2025, it converted to a Delaware Public Benefit Corporation and changed its name to SVN International PBC. The company is wholly owned by the SVN International Corp. Employee Stock Ownership Trust (SVN ESOT).
Financial Overview
Investment Range
$48,500 - $124,150
Franchise Fee (Low)
$17,000
Franchise Fee (High)
$30,000
Royalty %
7%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$18,500
Working Capital
$26,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
SVN International PBC has an accumulated deficit of $1,582,815 as of December 31, 2023. As of December 31, 2024, SVN International PBC's total stockholders' equity was negative $21,937,200, with an accumulated deficit of $21,938,200. The unaudited financial statements for the two-month period ended February 28, 2025, show a net income loss of $199,705.07. The auditors provided an unqualified opinion on the financial statements for the years ended December 31, 2024, 2023, and 2022.
Financing Details
SVN International PBC does not offer any direct or indirect financing to franchisees, nor does it guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
126
Franchised Units
126
Corporate Units
0
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
SVN International PBC has had one concluded litigation action. On October 7, 2020, a former SVN International PBC franchisee, KOVA Commercial, LLC, filed a complaint against SVN International PBC and other parties. The franchisee alleged infringement on geographical exclusivity and inducement of its advisors to defect to another franchisee. Claims included breach of contract, unjust enrichment, promissory estoppel, civil conspiracy, and tortious interference, seeking over $100,000,000 in damages. On April 1, 2021, the parties reached a confidential Settlement and Separation Agreement where SVN International PBC agreed to pay $75,000 of a total $300,000 settlement. The franchisee agreed to cease operations by September 4, 2021, and the lawsuit was dismissed on April 12, 2021.
Bankruptcy History
SVN International PBC has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, SVN International PBC franchisees must be in full compliance with their current Franchise Agreement and all mandatory requirements. They must have made all necessary capital expenditures to align with current brand standards and satisfied all financial obligations to SVN International PBC, its affiliates, and other creditors. Franchisees must not be in default and must provide written notice of their intent to renew between six and twelve months before the agreement expires. The franchisee or their Broker in Charge must hold a real estate broker's license in good standing. Additionally, they must meet the current qualifications for new franchisees, including training and certification requirements. If approved for renewal, franchisees must pay a $5,000 Renewal Fee, sign SVN International PBC's then-current franchise agreement, and execute a General Release and any applicable renewal addendum.
Training & Support Program
Franchisor Assistance
Before opening, SVN International PBC assists franchisees by approving or rejecting their chosen office site. They loan a copy of the confidential operations manuals, provide exemplar artwork for marketing materials, and offer a three-month online 'Trello Board' onboarding program to guide franchisees through setting up their business, which is mandatory for new franchisees or their Managing Directors and is provided at no additional charge. After opening, SVN International PBC provides access to an SVN User Account for generating brochures and marketing materials, and electronic versions of sales aids. Its staff offers support and information via telephone and online interactive sessions. Franchisees also gain access to other SVN International PBC franchisees for networking through various methods like online forums and virtual meetings. SVN International PBC conducts national and regional brand marketing and may organize sales contests. Optional administrative, executive, accounting, and marketing support is available for a fee.
Initial Training Hours
25
Training Location
Virtual
Ongoing Support
After opening, SVN International PBC provides ongoing access to the SVN User Account for marketing materials, opportunities to network and liaise with other SVN International PBC franchisees, national and regional brand marketing efforts, and sales contests. Staff are available for support and information via telephone and online interactive sessions, offering regular consultation and advice on administrative and operating issues. Additionally, SVN International PBC offers optional training programs such as the virtual SVN ADX Accelerator for advisors (approximately 10 weeks, $495-$800) and the virtual OperationsX Training (8 hours, no cost) covering topics like pipeline management and social media. There is also an optional online training program with 13 courses on commercial real estate elements. SVN International PBC holds annual conferences, including the SVN Annual Conference (mandatory for the franchisee or Managing Director and at least 50% of Authorized Salespersons plus the Broker-In-Charge, typically 2.5 days, costing $799-$1,300 per attendee), and a Managing Director Meeting (optional, typically 1 day, costing $399-$499 per attendee). Franchisees are responsible for their own travel, lodging, and meals for in-person events.
Franchise Requirements
Ideal Candidate Profile
SVN International PBC seeks franchisees who are licensed real estate brokers; if the franchisee is a business entity, at least one owner must be a licensed real estate broker. Candidates must be capable of sustaining the initial investment and ongoing expenses. The franchisee (owner) is required to personally supervise the SVN International PBC business and dedicate full-time attention to it, although day-to-day operations can be delegated to a Managing Director. All owners must sign the Franchise Agreement and a personal guaranty, and any new owners must pass a background check and sign an assumption agreement and guaranty.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
SVN International PBC assigns franchisees a 'Primary Market Area' (PMA), which is typically a metropolitan area. As of the FDD's effective date, the minimum PMA is generally a county, though SVN International PBC may change its size in the future. The PMA defines the geographic area where a majority (over 50%) of the franchisee's commercial real estate services are expected to be performed.
Staffing Notes
SVN International PBC requires franchisees to always have a licensed Broker in Charge for their business, and all Authorized Salespersons must also be licensed according to applicable laws. Franchisees are solely responsible for all employment practices, including hiring, firing, supervising, and compensating their employees. All employees of the SVN International PBC franchise are considered solely the franchisee's employees, and the franchisee is responsible for all related tax and insurance filings. SVN International PBC may establish policies impacting franchisee operating practices to ensure quality assurance.