ERA Real Estate

175 Park Avenue

[email protected]

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The franchisor is ERA Franchise Systems LLC, a Delaware limited liability company, incorporated on January 31, 1996, with a principal business address at 175 Park Avenue, Madison, New Jersey 07940.

We offer franchises for real estate sales offices in the United States to owners of existing real estate brokerage businesses and to persons who want to start a real estate brokerage business (the “Franchise”). The Franchise authorizes you to operate a real estate sales office using the “ERA® Identification” and the ERA® Marketing System. The ERA® Identification refers to the ERA® service mark and other trademarks, service marks, designs, logos and other commercial symbols we periodically designate (collectively, the “Marks”). The ERA® Marketing System is a system that we have developed which includes access to brand specific systems, productivity resources, basic business development support, education, real estate referral and broker communications procedures, marketing and advertising services, products and other support funded by the ERA® brand marketing fund (“Brand Marketing Fund” or “BMF”) and various other items. If you meet our financial, professional, operational, and other standards, operate in a market in which we seek to be represented, and agree to pay our initial franchise fee, we may grant you a Franchise. The Franchise permits you to offer residential real estate brokerage services, commercial real estate services, and limited property management services from a specified office location (the “Main Office’) and each other authorized office locations (the Main Office and each other authorized office location collectively referred to as an “ERA® Office” or “Office”) utilizing the ERA® Identification and Marketing System (collectively referred to as the “System”). You will be required to sign a “Franchise Agreement” (see Exhibit C) and Security Agreement (Exhibit F to the Franchise Agreement) and follow the mandatory provisions of the “ERA® Policies and Procedures Manual” (the “P&P Manual”) in conducting your business. You will be able to offer only real estate brokerage services, as described above, at your franchised location(s), unless we provide written approval of other real estate related excluded businesses to be operated from the Office(s), subject to the restrictions of the Franchise Agreement. For additional Branch Offices (as defined in the Franchise Agreement) that we approve, you will be required to sign our Location Addendum to the Franchise Agreement (see Exhibit C-3 and Exhibit C-4). Except for those expressly stated obligations in this disclosure document, the Franchise Agreement or any other agreement, including those agreements referenced herein or attached as Exhibits to this disclosure document that you sign, we and our parents, subsidiaries and affiliates make no representations or implied warranties to you either by course of conduct or otherwise. We have a diversity and veteran program under which applicable franchisees may receive benefits that include a lowering or waiver of the initial franchise fee. This program may be modified without notice at any time. We may establish and/or eliminate any benefits as we deem in the best interests of the System. We may offer an “ERA Powered® Franchise” for Offices in various markets. An ERA Powered® Franchise is essentially the same as an ERA® Franchise, except that, to take advantage of a franchisee’s own brand recognition, the franchisee is granted the right to use the “ERA Powered®” and “ERA Real Estate Powered®” Mark in conjunction with its own brand or trade name. An ERA Powered® Franchise (sometimes referred to in this disclosure document as ERA Real Estate Powered®) is typically offered to new converting franchisees, who typically have significant revenue of a at least a minimum of $5,000,000, significant market share, significant recognition of their own trade name or brand and have been in business for a minimum of 10 years. We have the right to consider other factors in granting an ERA Powered® Franchise, including without limitation, the prospective franchisee’s volume of transactions and reputation in the market place. We also may offer existing franchisees an ERA Powered® Franchise provided they meet the above requirements, although we have the right to vary them for existing franchisees. We also have the right to periodically waive or change the ERA Powered® Franchise eligibility requirements for new and existing franchisees. If you are selected to participate in and utilize the ERA Powered® Franchise, you must sign an ERA Real Estate Powered® Amendment to the Franchise Agreement. See Exhibit C-1. References to ERA® real estate brokerage offices in this disclosure document may also mean ERA Powered® real estate brokerage offices, as applicable. We may offer a “Town & Country Franchise” for Offices in small markets. To be eligible for consideration for a Town & Country Franchise, the following criteria must be met: (1) the Office must either be located outside of a Standard Metropolitan Statistical Area (as defined by the United States Office of Management and Budget and published by the Department of Commerce) or in a town having a population of less than 15,000 people; (2) the Office’s gross sales volume for the preceding calendar year must not have exceeded $10 million; and (3) the total gross sales volume for all real estate sales offices in the town in which the Office is to be located must not have exceeded $30 million during the preceding calendar year. We have the right to periodically waive or change these criteria. To obtain a Town & Country Franchise, you must sign a Town & Country Amendment to the Franchise Agreement. See Exhibit C-2.