Windermere Real Estate Franchise

Financing Details

Windermere Services Company does not routinely offer direct or indirect financing, leases, or installment contracts to its franchisees. However, in exceptional cases, Windermere Services Company and its affiliated entities have provided limited financing assistance to some franchisees. The specific terms of such financing have varied depending on the individual circumstances of each case.

Litigation Summary

Windermere Services Company has been involved in four significant litigation cases. The first involved an arbitration and subsequent lawsuit initiated by a former franchisee, John Wellman and Windermere Real Estate/Wall Street, Inc., starting in 2020 and continuing with a lawsuit filed in April 2021. The franchisee alleged breach of contract, tortious interference, and violation of the Washington Franchise Investment Protection Act, among other claims. Windermere Services Company denied the allegations and counterclaimed for breach of contract. An interim award largely favored Windermere Services Company, finding Wall Street breached its agreement. The case was globally settled in July 2022, with Windermere Services Company contributing $2,311,395 to the settlement without admitting liability. The second case, "Bennion & Deville Fine Homes, Inc. v. Windermere Real Estate Services Co.", was filed in 2015 by former franchisees and an area representative. Claims included breach of contract and violation of the California Franchise Relations Act. Windermere Services Company filed a counterclaim for breach of contract and trademark infringement. In 2016, some claims were dismissed, and a jury verdict in July 2018 awarded Windermere Services Company $1,574,790.30 plus attorneys' fees. The plaintiffs appealed, but a settlement was reached in March 2019, dismissing the appeal. Two class action lawsuits are currently pending against Windermere Services Company, both filed in 2023 and 2024. "Grace v. National Association of Realtors et al." was filed in December 2023, alleging Sherman Act, Cartwright Act, and Unfair Competition Law violations related to buyer broker commissions. Windermere Services Company was added in January 2024, and the case is stayed until December 2024. "Gibson et al. v. National Association of Realtors et al." was filed in April 2024, also a class action alleging Sherman Act violations. Windermere Services Company, along with other defendants, filed a motion to dismiss for lack of personal jurisdiction, which is pending.

Renewal Conditions

To renew their franchise agreement, Windermere franchisees do not need to take any specific action for automatic renewal. The agreement automatically renews for an additional one-year term unless either the franchisee or Windermere Services Company provides written notice of non-renewal at least 180 days before the current term expires. If a franchisee fails to provide such notice, they are considered to have agreed to renew the franchise on the existing terms. Upon renewal, Windermere Services Company may also require the franchisee to sign a new agreement with terms and conditions that could be significantly different from their original agreement.

Staffing Notes

Windermere Services Company requires franchisees to be responsible for hiring and training their own employees and independent contractor sales associates, including managers and agents. While Windermere Services Company does not set limits on who can be hired as a managing broker or on-premises supervisor, it mandates that the franchised business complies with all applicable state real estate licensing laws and regulations. These laws often require a managing broker to meet specific educational or licensing criteria. Windermere Services Company does not provide a mandatory training program for on-premises supervisors, leaving this responsibility to the franchisee to ensure compliance with state regulations.