Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 301

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 301
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 other personnel. In particular, we compete with both national and local real estate
brokerages for qualified agents who manage our operations in each state and who are our on-the-ground representatives. With the evolving
real estate brokerage market, we must find ways to attract and retain these people. And with the change in the way people work that has
been accelerated by the COVID-19 pandemic, finding qualified agents and employees has become more difficult. We might have difficulty
in finding, hiring and retaining highly skilled personnel with appropriate qualifications. Many of the companies with whom we compete
for experienced personnel have greater resources than we do. In addition, in making decisions about where to work, in addition to cash
compensation, people often consider the value of the stock options or other equity incentives they receive. We currently have an equity
incentive plan to offer stock incentives to our employees and our agents that we believe is competitive with plans offered by other publicly
traded real estate brokerage companies. However, if those plans fail to encourage new hires or to motivate our existing staff, we may
fail to attract new personnel or fail to retain our current personnel which would severely harm our growth prospects. Moreover, the forthcoming
changes in the way real estate brokers will be compensated brought about by the recent antitrust litigation settlements will likely diminish
the revenues earned by lesser producing agents and agents that represent home buyers. This decrease in earnings is likely to result in
many agents leaving the industry, increasing competition for high performing agents.

22

Competition in the residential
real estate franchising business is intense and may adversely affect our financial performance.

We compete against national
and international real estate brokerage franchisors as well as smaller franchisors. Our products are the brands we sell and their reputation
in the marketplace. Potential franchisees, when shopping for a brand, look to see the level of support that they can receive compared
to the fees and dues that they will have to pay. This is our value proposition. While the national and international brands far exceed
us in financial resources, geographic coverage, marketing ability and infrastructure, we believe that our “family-oriented”
style of business, based on our “three pillars” philosophy, is a strong selling point. So, while competing franchisors may
offer franchisees monthly ongoing fees that are lower than those we charge, or that are more attractive in particular market environments,
we believe that our “high touch” approach is able to overcome many of the factors that competitors sell. Corporate-owned competitors
compete primarily on