Howard Hanna Real Estate Franchise
Cost, fees, owner earnings, closure rate and litigation for a Howard Hanna Real Estate franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Howard Hanna Real Estate discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Franchisor makes no representations about franchisee financial performance or past outlet performance. May provide actual records for existing outlets only.
What a Howard Hanna Real Estate franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $25,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Total recurring fees | 6% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $45,000 – $258,500 | Item 7 — franchisor's own low/high estimate |
Tiered royalties 2%-6% on gross receipts; $25k annual minimum per office. Multiple supplemental fees: agent services ($75/month), branch offices ($10k), non-solicitation penalties (5% of revenues).
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Howard Hanna Real Estate system size and owner turnover
| Total outlets | 465 |
| Ceased operations | 3 |
| Terminated by franchisor | 2 |
| Transferred to new owners | 0 |
| Closure rate | 0.6% of outlets |
9 franchised units ceased operations 2023-2025; significant terminations; affiliate litigation over alleged misrepresentation.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Howard Hanna Real Estate worth it? — how it compares to 436 similar franchises
| Ongoing fees | 6% of sales | lower than most (median 8%) |
| Startup cost | from $45,000 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.6% of outlets | about average |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Howard Hanna Real Estate
The franchisor's framing: Franchisor makes no representations about franchisee financial performance or past outlet … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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Howard Hanna Real Estate franchise — frequently asked
- How much does a Howard Hanna Real Estate franchise cost?
- The FDD lists a total initial investment of about $45,000–$258,500, including a $25,000 initial franchise fee.
- How much do Howard Hanna Real Estate franchise owners make?
- Howard Hanna Real Estate discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Howard Hanna Real Estate franchise fees?
- Howard Hanna Real Estate's FDD discloses a $25,000 initial franchise fee, a 6% royalty on gross sales, for roughly 6% of gross sales in recurring fees before rent, labor, or debt service. Tiered royalties 2%-6% on gross receipts; $25k annual minimum per office. Multiple supplemental fees: agent services ($75/month), branch offices ($10k), non-solicitation penalties (5% of revenues).
- What is the Howard Hanna Real Estate franchise profit margin?
- Howard Hanna Real Estate discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Howard Hanna Real Estate franchise failure rate?
- 9 franchised units ceased operations 2023-2025; significant terminations; affiliate litigation over alleged misrepresentation.
- How many Howard Hanna Real Estate locations are there?
- Howard Hanna Real Estate's FDD reports 465 total outlets, with 3 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Howard Hanna Real Estate have complaints or lawsuits?
- Howard Hanna Real Estate discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Howard Hanna Real Estate franchise worth it?
- It depends on the numbers, not the pitch. Howard Hanna Real Estate scores F on disclosure honesty, carries about 6% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Compare Howard Hanna Real Estate to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Howard Hanna Real Estate or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.