Weichert Real Estate Franchise

Financing Details

Weichert Real Estate Affiliates, Inc. does not offer any direct or indirect financing to franchisees. They also do not guarantee any notes, leases, or other financial obligations for their franchisees.

Litigation Summary

Weichert Real Estate Affiliates, Inc. has a history of legal matters, with eight cases disclosed, including both pending and concluded actions. Five of these cases are currently pending, all filed in late 2023: 1. Beverly Ann Dannatt v. Weichert Co. (Pending): This is a putative class action filed in August 2023, alleging that Weichert Co. engaged in illegal conduct by directing agents of franchised offices to make unsolicited text messages and calls, violating the Telephone Consumer Protection Act. The plaintiff seeks a determination of illegal conduct, a permanent injunction, and damages. 2. Don Gibson et al. v. The National Association of REALTORS®, et al. (including Weichert Realtors) (Pending): Filed in October 2023, this putative class action alleges an antitrust conspiracy by NAR and various brokerages (including Weichert Realtors) related to the 'Mandatory Offer of Compensation Rule,' which purportedly requires sellers to pay buyer-broker commissions, leading to inflated costs. The plaintiffs seek a determination of illegal conduct, a permanent injunction, and damages. 3. Mya Batton et al. v. Compass, et al. (including Weichert, Realtors) (Pending): Filed in November 2023, this is another putative class action on behalf of home buyers, making similar antitrust allegations as the Gibson case, but also claiming violations of numerous state antitrust and consumer fraud statutes, and state doctrines of unjust enrichment. 4. Daniel Umpa v. The National Association of REALTORS®, et al. (including Weichert Realtors) (Pending): Filed in December 2023, this is another putative class action similar to the Gibson case, alleging antitrust violations related to the 'Mandatory Offer of Compensation Rule.' 5. 1925 Hooper LLC et al. v. The National Association of REALTORS®, et al. (including Weichert of North America, Inc.) (Pending): Filed in November 2023 and amended in December 2023, this is another putative class action similar to the Gibson case, alleging antitrust and consumer fraud violations related to the 'Mandatory Offer of Compensation Rule.' Weichert intends to vigorously defend against these pending allegations, which could take several years to resolve. Three cases have been concluded: 1. In Re: Franchise No Poaching Provisions (Weichert Real Estate Affiliates, Inc.) (Concluded): In December 2019, following an investigation by the Washington Attorney General into non-poaching clauses in franchise agreements, Weichert entered into an Assurance of Discontinuance. Weichert agreed to remove these provisions from future agreements and not enforce existing ones, without admitting liability or wrongdoing. 2. First Champion Realty, Inc. v. Weichert Real Estate Affiliates, Inc., and Weichert Lead Network, Inc. (Concluded): In August 2014, a franchisee filed a complaint alleging improper handling and diversion of leads, breach of good faith, consumer fraud, conversion, and tortious interference. While an injunction was denied and some counts dismissed, the remaining claims were settled in July 2015, resulting in a payment and termination of relevant agreements. 3. DJA Enterprises, LLC v. Weichert Real Estate Affiliates, Inc., and Michael Mavromates (Concluded): In January 2013, a franchisee alleged territorial rights infringement by a 'de facto' office, violating state franchise law and breaching the agreement. The dispute was settled in August 2014, with Weichert making a payment of $35,000 and amending related agreements.

Renewal Conditions

Weichert Real Estate Affiliates, Inc. does not offer renewal rights for its franchise agreements. If the franchisor decides to offer a new franchise agreement to a franchisee, the terms and conditions may be significantly different from the original contract. Franchisees may also be required to sign a general release.

Staffing Notes

Weichert Real Estate Affiliates, Inc. requires each franchisee to designate a Responsible Broker who must be duly licensed and personally and directly supervise the business. This Responsible Broker may also serve as the Business Manager for the franchise. Additionally, each office operated by the franchisee must have a designated Office Manager. For a single office, the Responsible Broker, Business Manager, and Office Manager can be the same individual. Franchisees are responsible for entering into written employment agreements with their Responsible Brokers, Business Managers, and Office Managers, which must include a confidentiality and non-competition agreement. Sales associates are required to attend initial sales training programs. While specific staff counts are not provided, these roles define the core management and sales structure.