Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 44

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 44
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 to indemnify us. Each franchise agreement is subject to termination by us in the event that the franchisee
breaches its contract, generally after expiration of applicable cure periods, although under certain circumstances a franchise agreement
may be terminated by us upon notice without an opportunity to cure. The default provisions under the franchise arrangements are drafted
broadly and include, among other things, any failure to meet operating standards and actions that may threaten our brands. In addition,
each franchise agreement eventually expires and upon expiration, we or the franchisee may or may not elect to renew the franchise arrangement.
If our agreement is renewed, such renewal is generally contingent on the franchisee’s execution of the then-current form of franchise
contract (which may include terms the franchisee deems to be more onerous than the prior franchise agreement), the satisfaction of certain
conditions and the payment of a renewal fee. If a franchisee is unable or unwilling to satisfy any of the foregoing conditions, the expiring
franchise agreement will terminate upon expiration of the term of the franchise arrangement.

Our operating results
are subject to seasonality and vary significantly among quarters during each calendar year, making meaningful comparisons of successive
quarters difficult.

The residential real estate
industry is subject to seasonality. Sales activity is typically stronger in the spring and summer months when school is not in session
compared to the fall and winter seasons. This is true even in the Southeastern U.S. where weather patterns do not change significantly
with the seasons. However, extreme weather does affect our business by keeping people focused on matters other than home buying. We have
historically experienced lower revenues during the fall and winter seasons, as well as during periods of unseasonable weather, which reduces
our operating income, net income, operating margins and cash flow. Real estate listings precede sales, and a period of poor listings activity
will negatively impact revenue. Our revenue and operating margins each quarter will remain subject to seasonal fluctuations, which may
make it difficult to compare or analyze our financial performance effectively across successive quarters.

A significant increase
in private sales of residential property, including through the internet, could have a material adverse effect on our business, prospects
and results of operations.

Although, as of 2024, NAR estimated that almost nine in ten home sellers
worked with a real estate agent to sell their home, a significant increase in the volume of private sales due to, for example, increased
access to the internet and the proliferation of websites that facilitate such sales,