Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 14

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 14
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 own brokerage businesses,
are solely responsible for their operations and risks, and are able to retain the substantial upside of their business if they are profitable.
Our franchisees use our successful and well-known brands, our systems and technology, training and personal assistance and guidance to
help run their businesses more efficiently and, we believe, more successfully than other branded real estate franchisees. Our franchisees
pay us an initial licensing fee, a royalty fee based on their gross commissions, an annual membership fee, a coaching fee payable to Coaching
for coaching services, a commercial royalty fee payable to La Rosa CRE for all commercial real estate transactions, a training fee for
its administrative personnel and a fee to use our proprietary software. Because our franchise “product” has been developed
over the years and is delivered in a “package” format, our fixed costs are low and our franchising gross margins are relatively
higher than our more labor intensive businesses. While we intend to continue the franchise arm of the business, we will, in the future,
concentrate on opening corporate offices that produce higher revenue and increased margins.

Coaching grew out of Mr. La
Rosa’s life and business coaching seminars which were organized in 2019 to provide education and mentoring to new real estate agents
who join Realty in any of our offices. Each agent in coaching is assigned an experienced real estate agent/coach who assists and advises
the new agent for, at a minimum, their first three sales transactions and the successful completion of our exclusive core competency courses
and examinations. Brokers compensate us for the courses and mentoring by splitting their commissions with us when they are involved in
the sale and purchase of a property for which we receive thirty percent (30%) of their share of the real estate brokerage commission.
Our franchisee brokers also take the in-house course and ongoing coaching that cover topics, including but not limited to local real estate
brokerage law, lead generation, recruiting, business management, industry trends, and leadership. We added a second tier of coaching in
2021 that we believe provide business and personal growth and advanced real estate courses to our and our franchisees’ agents for
various fees based on the subject matter and length of the course.

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    https://www.redfin.com/news/housing-market-value-december-2024

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Unlike most other residential
real estate brokerage companies, we encourage our sales agents to seek out property management business. Property Management, which was
organized in 2014, trains our