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SUBJECT DOSSIER · FDD 2026

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.

Other Franchises · disclosure-honesty grade · from public state filings
GRADE F · FAILS DISCLOSURE

Disclosure honesty

F
Transparency 1 / 5

Howard Hanna Real Estate discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.

Outlets465
Disclosed lawsuits1
Closure signals3 ceased
Investment
$45,000–$258,500
Total fees
6% of sales
Outlets
465
Closure signals
3 ceased, 2 terminated
Lawsuits
1
◢ FINDINGS
ITEM 19
No real earnings disclosure
The franchisor won't put owner profit in writing — you can't verify the pitch.
ITEM 20
3 outlets ceased operations
9 franchised units ceased operations 2023-2025; significant terminations; affiliate litigation over alleged misrepresentation.
ITEM 03
1 legal matters disclosed
Litigation in Item 3 signals how the franchisor treats its franchisees.

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

FeeDisclosedWhere it comes from
Initial franchise fee$25,000Item 5 — paid up front, before you open
Royalty6% of gross salesItem 6 — charged on revenue, not profit
Total recurring fees6% of gross salesBefore rent, labor, food or debt service
Total initial investment$45,000 – $258,500Item 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 outlets465
Ceased operations3
Terminated by franchisor2
Transferred to new owners0
Closure rate0.6% 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 fees6% of saleslower than most (median 8%)
Startup costfrom $45,000cheaper than most (median $138,750)
Disclosure honestyGrade Fless honest than most of the category
Closure rate0.6% of outletsabout average
Disclosed lawsuits1about average

Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

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.

LOW
MEDIAN
HIGH

See a full sample report → · 30-day guarantee

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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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.