Effective Date01, May 2020
We are a limited liability eompariy formed in Delaware On December 3, 1999 under the name GMAC Real Estate, LLC. We changed our name in November 2009 tO Our current name- Real Living Real Estate, LLG. Our prihcipal business address is 18500 Von Karman Ayehue, Suite 400;, Irvine, Califorriia 92612. Information about Our affiliates that offer franchises is described later in this Item.
We have: offered franchises for real estate brokerage businesses beginning in March 2000. From March 2000 until November 2009, we-offered frarichises for real estate brokerage businesses under thCi GMAC Real Estate brand. After November 2009, we offered franchises under the Real Living brand. We also previously operated real estate brokerage businesses in select markets, but we stopped doing so in Pecember 2009. We began offering area development rights in 2010,, but no longer do so. Neither we nor our affiliates.have Offered frarichises in other lines of business
You will operate a real estate brokerage business under the name Real Living Usirig Our system. This will involve the; business of listing, offering, selling, exchanging, managing, auctioning, leasing arid renting real estate, representing sellers, purchasers, lessors and rentem of real estate in exchange for a fee, commission Or other compensation, and providing marketing and consulting services or other fee-generating activities^ The market for your franchised business is the real estate brokerage industry arid involves residential real estate consisting of four or fewer units. It also involves cOmrrierGial real estate consisting Of all other properties if the listing price is less than $25,000,000. It does not involve the sale of insurance, brokerage of business opportunities or mortgage brokerage or origination. We do not grant you territorial rights in a market area and we do not regulate the; number of agents you have.You may operate eertain additional types of offices as part of yqur business. You will! use them for purely administrative purposes and for the housirig of relocation administration persOhhel only, temporary tract sales offices, new homes subdiyisions or developments'to sell property in those subdivisions or developments and information kiosks. The number of offices and agentsimay vary from franchise tO franchise
When you sign a Franchise Agreement you must pay us a non-refundable initial franchise fee of $20,000 for your first office, plus $2,56o for each additional office, and $1,000 for a restricted purpose location. Restricted purpose locations include the.following: (a) m office used for purely administrative purposes and for the housing of relocation administration ipersonnel only; (b) a temporary tract sales: office in a new homes subdivision or development to sell property in that subdiyision or development; (e) an information ikiosk; or (d) a facility Igeated away from your approved Location(s) that is set Up for the convenience of sales professionals ortly and not to conduct day to day business with clients. ! We also may offer incentives'that reduce the total, initial cost of affiliating with Real Living. This cost reduction may take the form of a WaiVer of all dr part of the initial franehise;fee, an abatement or reduction of royalty fee payments for a period of time we specify, or another form, of financial incentiye. ' The ihitial franchise fee is not refundable under any circumstances
1. Down payments may be required by third parties with whom you contract to provide suppliesi and services relafed-: to the conversion of your existing business-, to a Real Living brokerage. We do not require any down payment. 2. The amount fihanced'will be a portion of the total amouiitjrequircd to convertypur existing; business to a,Real Living brokerage. The-costs, of conversion will include costs such :as hew exterior signs for your Real Living brokerage,jard,signs for agents^ stationery and marketing materials, (A copy ofthe franchise term note for conversion costs.is attached to this disclosure document as Exhibit;!:) 3. The,term can range from 120 - 180 months and will in most circmnstances be identical to the term of your Franchise Agreement. 4. Franchise Term Notes, conversion costs or other obligations will bear interest at;an!annual rate ranging from 7.5% (APR of 7-5%) fo 15,0% (APR of 15.0%) if priced using a fixed rate of interest, and a range of between Prime and Prime + 2.5% if priced using a floating rate, and will be payable under the, .terms of a promissory note evideiicing.the debt5. Amounts fin^ced will be repaid in anhual installments. In certain circumstances we may offer you aii annual rebate of a portion of,your Continuing Royalty payments for the puipose ofapplying the rebate ahiouht as a credit against the;annual ihstallment payment due under your franchise-term note. 6; Proniissory notes will not impose^prepayment penalties but will provide for acceleration of payment of principal ifa default occurs, either under the promissOiy note, or if you default Under'the Franchise Agreement. 7. Real Living may also require that any note be secured.by real or personal property. ,8. AlLnotes will provide that,a failure to makopaymerits under the/note will also cause you to be in default, of the Franchise Agreement: Real Living will require your principals and their spouses- to personally guarantee the debt. All notes require you to waive diligence, demand, presentment for payment,; notice of non-payment, protest and notice ofprotest, notice of intent to accelerate and notice of acceleration,; diligeneei in collecting or bringing suit against any party and notice of any renewals, extensions, and amendments to or modifications of the note,ias well as the claimingof any statute of limitatiOnsos a defense^ Repaymentarrangements may'include payment to Real Livingfor its affiliate of anioverride abOyeoontinUing royalties, whichls then usedto pay interest and principal. Real Living does not intend to assign of discount to, any third party any note, contract or other instrument executed by its fraiachisees, but Real Living.reserves all rights to do so. Other than as described above, we do not offer direct or indirect financing. We do not guarantee. your note, lease Or obligation.
The,FTC's Franchise Rule permits aTranchisor to provide information about the actual or potential financial performance of its franchised and/or firanchisor^owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Docurhent. F inancial performance'information that differs from that included in Item 19 may be giveii orily if: (1) a. franchisor provides the actual records of an existing outlet you are Gorisidefihg buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular cifcurhstanCes. We do not make any representations about a frarichisee'S future financial performance or the past financial perforrtiance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are; purchasing an existing, outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future ihcomei you should report it to the franchisor's'managernent by contacting Patricia M. Mansur- BfOwn in our Legal Department at 18500 Vori Xarman Avenue, Suite 400, Irvine, California 92612, (949) 794-7000, the Federal Trade Gptnmission, and the appropriate state regulatory agencies.