Valbridge Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$69,914 - $163,529
Business Summary
Valbridge Property Advisors Franchising System, LLC operates a business that specializes in appraising various types of commercial, industrial, multi-family, and residential real property, as well as closely held businesses and tangible property like furniture and equipment. The company also offers consulting services focused on these assets and improving their value. Franchisees are expected to convert their existing appraisal practice to align with the Valbridge Property Advisors system's standards and are restricted from engaging in appraisal management company activities, real estate brokerage, or other unauthorized business operations. To qualify, Valbridge Property Advisors requires franchisees to be licensed appraisers with at least two years of full-time experience in appraising the specific types of property their practice will handle.
Corporate History
Valbridge Property Advisors Franchising System, LLC was formed as a Florida limited liability company on January 24, 2013, and began offering Valbridge franchises in the same year. The franchisor's parent company, Valbridge Property Advisors, Inc., a Florida corporation, was initially formed on September 9, 2011, as Cambridge Property Advisors, Inc. The earliest predecessor of the parent company, Cambridge Property Advisors, Inc., a Delaware corporation, was formed on June 2, 2011, and later merged into the current parent entity. Valbridge Property Advisors and its related companies have consistently focused on the appraisal business through franchising, with affiliates also managing a real property database (Data Solutions) and providing an automated report writing platform (Data Appraise) that franchisees are required to use. The company's management team and the officers and directors of its parent company also own and operate their own Valbridge franchise businesses.
Financial Overview
Investment Range
$69,914 - $163,529
Franchise Fee (High)
$25,000
Royalty %
3.5%
Equipment Costs (Low)
$6,000
Equipment Costs (High)
$15,000
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Valbridge Property Advisors Franchising System, LLC's financial statements show a significant portion of its assets are tied up in advances to its parent company, Valbridge Property Advisors, Inc., and other related entities. As of December 31, 2023, these advances totaled $9,452,573 (up from $7,943,133 in 2022). These advances are non-interest bearing, have no fixed repayment date, and have been reclassified as long-term, meaning they are not expected to be collected in the near term. This structure indicates that a large part of the company's financial resources are invested in its affiliates without generating direct interest income. The auditor's report did not include a going concern qualification, suggesting no substantial doubt about the company's ability to continue operations.
Financing Details
Valbridge Property Advisors Franchising System, LLC generally does not offer financing to its franchisees. However, in specific limited situations, the company has allowed new franchisees to delay payments for the initial franchise fee and the initial technology infrastructure fee. Additionally, in some of these limited cases, Valbridge Property Advisors Franchising System, LLC has reduced the royalty fees for franchisees. The company does not provide guarantees for any leases or other financial obligations undertaken by its franchisees.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Valbridge Property Advisors Franchising System, LLC had one legal action filed against it in 2023. A former franchisee, MJN Enterprises, Inc., sued Valbridge Property Advisors and its parent company, along with a current and former director of the parent, and other franchisees, on June 16, 2023. The lawsuit, filed in Arizona, alleged intentional interference with contract and breach of fiduciary duty, seeking unspecified compensatory and punitive damages. The case was dismissed with prejudice for some defendants in February 2024, and was voluntarily settled with Valbridge Property Advisors and its parent on February 15, 2024. Under the settlement terms, Valbridge Property Advisors and its parent agreed to pay MJN $70,000, with all parties denying liability.
Bankruptcy History
Valbridge Property Advisors Franchising System, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Conditions
To renew their franchise agreement, Valbridge Property Advisors franchisees must be in full compliance with their existing agreement and all obligations to Valbridge Property Advisors and its affiliates, and must not be involved in any adversarial legal proceedings against them. The current franchise agreement must also have run for its full normal term. If these conditions are met, franchisees can renew by signing the then-current form of the franchise agreement, which may include materially different terms regarding fees and territorial rights. A renewal fee is required, which is $6,000 for a 5-year Base Term, $5,000 for a 6-year Base Term, or $4,000 for a 7-year Base Term. Franchisees must also provide a general release of all claims against Valbridge Property Advisors.
Training & Support Program
Franchisor Assistance
Valbridge Property Advisors provides pre-opening assistance to help franchisees transition their existing appraisal businesses. This includes access to digital templates for company marks and marketing materials, guidance on business transition, and assistance in establishing supply sources. Franchisees receive the Operations Manual and instructions on how to subscribe to, license, and use required equipment, software, and services, including the designated report writing platform (at the franchisee's cost). The franchisor also provides specifications for necessary computer systems and initial training, which is delivered online and at annual franchisee meetings. Ongoing support includes telephone advice regarding business operations, information on system alterations, and bulletins covering sales, service methods, marketing development, and operating procedures. Franchisees are required to attend at least one annual meeting at their own expense and have access to the company's website for information and communications.
Initial Training Hours
13
Training Location
Online/virtual and at various locations throughout the United States, typically in major cities.
Ongoing Support
Valbridge Property Advisors provides ongoing support to its franchisees through telephone advice and assistance for operating their franchised business and the Valbridge System. Franchisees receive details of any required alterations or improvements to the system and information about meetings, conventions, and seminars, which they attend at their own expense (an annual meeting is mandatory). The company also issues bulletins on sales and service methods, marketing development, techniques, and business operating procedures. Franchisees are granted access to a software-as-a-service report writing platform and the company's website, both for which they incur costs. There is currently no franchisee newsletter.
Franchise Requirements
Ideal Candidate Profile
Valbridge Property Advisors seeks individuals or entities for its franchise system where at least one owner, holding a minimum of ten percent ownership, has been consistently engaged on a full-time basis in appraising relevant property types for at least the past two years. This owner must also possess all necessary licenses required for their appraisal work.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
2
Operational Details
Location Type
commercial
Owner Participation
supervisory
Territory Type
limited
Staff Count
7
Territory Size Requirements
Valbridge Property Advisors does not grant an exclusive territory to its franchisees, meaning they may face competition from other franchisees, licensees, or company-owned outlets, and from other distribution channels or competitive brands controlled by the franchisor. The franchisor does not grant a minimum territory size. The territory for a Valbridge Property Advisors franchised business is a specified geographical area, which is established prior to the franchisee signing the franchise agreement. The franchisor's obligation regarding the territory is to prevent other persons from establishing physical locations for the franchised business within that territory using any of the brand's marks.
Staffing Notes
Valbridge Property Advisors requires that the franchised business be directly supervised by a manager who holds a specific professional designation, such as MAI, SRA, or ASA. This manager must dedicate their full-time attention to the business and have complete authority over its management and operations. They are also restricted from holding an interest in or being employed by any other appraisal firm. If the franchisee is an entity, one or more owners holding at least twenty-five percent of the ownership must possess a required designation, and each owner with ten percent or more equity must personally guarantee the franchisee's obligations. Employees and independent contractors who access the franchisor's proprietary information must sign a restrictive covenant agreement.