United Real Estate Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$144,500 - $385,500
Franchise Fee
$31,500
Min Cash Required
$100,000
Total US Locations
90
Business Summary
United Real Estate offers franchises for a real estate brokerage business focused on urban properties. United Broker Offices specialize in listing and selling properties in cities with populations over 50,000. Unlike many real estate franchises, United charges ongoing fees based on the number of agents and real estate transactions, rather than a percentage of the transaction value. United Broker Offices and their agents provide services to both residential and commercial clients, representing buyers, sellers, landlords, and tenants, but they are generally restricted from routinely handling agricultural, hunting, recreational, or rural lifestyle properties.
Corporate History
United Real Estate's origins trace back to 1925 through its predecessor and affiliate, United Country Real Estate, which historically specialized in rural property sales. The direct franchisor, Five D I, LLC, was formed on April 8, 2015, taking over the United Brokerage office franchise system from its immediate predecessor, Five D, Inc., which had been franchising United Broker Offices since February 2013. In June 2015, United Real Estate Holdings, LLC, the ultimate parent company, gained majority ownership by McCarthy Capital. United Real Estate distinguishes itself from United Country by focusing on urban properties and using a different fee structure based on agent count and transaction volume, rather than commission percentages.
Financial Overview
Investment Range
$144,500 - $385,500
Franchise Fee (Low)
$31,500
Franchise Fee (High)
$35,000
Minimum Cash Required
$100,000
Equipment Costs (Low)
$2,500
Equipment Costs (High)
$175,000
Working Capital
$125,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
United Real Estate's management has determined there are no substantial doubts about its ability to continue operating for the next year. As of December 31, 2023, United Real Estate reported positive working capital, indicating it has enough current assets to cover its current liabilities. However, the company experienced a net loss of $697,278 in 2023, following a net income of $3,557,746 in 2022, and reported a net loss for the first five months of 2024. United Real Estate is also involved in five recent class-action lawsuits, which management acknowledges could harm its business and financial condition due to substantial defense costs and demands on key personnel.
Financing Details
United Real Estate does not provide any direct or indirect financing to its franchisees. This includes not offering loans for equipment, initial fees, or working capital. The company may, however, provide a list of third-party lenders who are willing to finance franchise costs upon request. United Real Estate is not affiliated with these lenders, does not receive compensation from them, and does not guarantee any financial obligations undertaken by franchisees.
Performance Metrics
Total US Locations
90
Franchised Units
72
Corporate Units
18
Avg Square Footage
2,500
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
United Real Estate, its parent company, and some of its franchisees are currently involved in five putative class-action lawsuits. These lawsuits, all filed between October 2023 and April 2024, generally allege that United Real Estate and other real estate brokers conspired with the National Association of Realtors to engage in anti-competitive behavior, violating federal and state antitrust laws, as well as state consumer protection statutes. The cases involve claims from both home sellers and home buyers. United Real Estate and its involved franchisees intend to vigorously contest these allegations and raise all appropriate defenses.
Bankruptcy History
United Real Estate reports that it has no bankruptcy history to disclose in its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew its franchise agreement, a United Real Estate franchisee must first not be in default. They must notify United Real Estate of their intent to renew between 240 and 180 days before the current agreement expires. The franchisee will need to sign United Real Estate's then-current franchise agreement, which may have different terms and higher fees, and execute a general release of all claims against United Real Estate. Additionally, they must remodel, refurbish, and modernize their United Broker Office to meet current brand standards, pay a renewal fee, and complete any required training to United Real Estate's satisfaction. All monetary obligations to United Real Estate and its affiliates must be satisfied, and the franchisee must prove they have the right to occupy the premises for the renewal term.
Training & Support Program
Franchisor Assistance
United Real Estate provides extensive assistance to its franchisees both before and after opening. Prior to opening, United Real Estate furnishes lists of standards for fixtures and equipment, inventory, supplies, and designated suppliers. It offers initial training for the Managing Principal and one other approved person at no charge (for up to 5 days) and loans a copy of the Operations Manual. United Real Estate also helps with site selection and reviews/approves any renovations to ensure they meet brand standards. After a United Broker Office opens, United Real Estate offers advice on publicity and promotions, and its staff is available for consultation via phone, fax, and email during business hours. Franchisees receive updates to the Operations Manual, invitations to conventions and the Annual Event, and can request auction marketing and event management assistance. United Real Estate also develops, maintains, and owns a dedicated Broker Office Website for the franchisee and individual Agent Websites for each agent. Additionally, upon request, United Real Estate may collaborate with franchisees on business development opportunities such as agent recruitment, marketing strategies, and mergers and acquisitions.
Initial Training Hours
40
Training Location
Dallas, Texas or virtual setting
Ongoing Support
After a United Broker Office opens, United Real Estate provides ongoing support by offering advice on publicity and promotions, and making staff available for consultation via telephone, fax, and email during regular business hours. Franchisees receive additions and supplements to the Operations Manual, and are invited to attend conventions, seminars, and the Annual Event. United Real Estate also offers auction marketing and event management assistance upon request, and provides periodically developed marketing materials. The franchisor manages and owns the Broker Office Website for the franchisee and individual Agent Websites for their agents. Furthermore, United Real Estate may, at its discretion, collaborate with franchisees on business growth strategies such as agent recruitment, marketing, networking events, and mergers and acquisitions.
Franchise Requirements
Ideal Candidate Profile
United Real Estate is primarily looking for experienced individuals who are licensed real estate brokers or hold a real estate license, and have at least five years of experience in offering and selling real estate. Candidates must appoint a Managing Principal who meets these eligibility standards and is approved by United Real Estate to supervise and manage all aspects of the business. An Operations Manager, if recruited, also needs a valid real estate broker's license. The ideal franchisee is also expected to be focused on urban properties and not intend to perform non-urban focused real estate brokerage services. Currently, United Real Estate is also offering incentives to larger, existing real estate brokerages that meet specific agent and annual transaction counts to convert to a United Brokerage.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Min Years Experience
5
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
United Real Estate defines each territory as a specific geographic area around the approved United Broker Office, using political, geographic, population, or other boundaries. The exact size of the territory varies depending on factors such as the number of licensed real estate agents, the availability of adjacent markets, United Real Estate's strategic plans, the franchisee's resources, and overall market conditions. The initial territory size and subsequent Business Growth Goals are established using local MLS data to assess past real estate transactions and current market share, with required annual growth percentages ranging from 0.5% to 4% in the first year and potentially changing thereafter.
Staffing Notes
United Real Estate franchisees must appoint a Managing Principal, who needs to be an approved licensed broker or real estate agent with at least five years of experience in real estate sales. This individual is responsible for supervising and managing all aspects of the business. Franchisees may also hire a full-time Operations Manager. Both the Managing Principal and any Operations Manager must hold a valid real estate broker's license for the relevant state(s) and complete United Real Estate's initial training. United Real Estate may require these managerial employees to sign confidentiality and non-compete agreements. Franchisees are solely responsible for all employment matters, including hiring, termination, and compensation of their staff and agents, as United Real Estate does not control these aspects. United Real Estate requires franchisees to maintain a minimum agent count of 100 and ensure all personnel and agents receive appropriate training and supervision.