Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 302

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 302
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 the basis of commission payments to their agents. While we believe that we are competitive in that market, our brand
is not as strong as competitors who have been in the market longer and have the financial wherewithal to promote themselves in the media.
Our largest competitors in this industry in the U.S. include RE/MAX Holdings, Inc., Realogy Holdings, Corp. (which operates several brands
including the Coldwell Banker and Century 21 brands), Fathom Holdings Inc., eXp World Holdings Inc., Real Brokerage Inc., among others.

Our Company owned brokerage
business is subject to competitive pressures.

Our Company owned brokerage
business, like that of our franchisees, is generally subject to intense competition. We compete with other national and independent real
estate organizations including our franchisees and those of other national real estate franchisors, franchisees of local and regional
real estate franchisors, regional independent real estate organizations, discount brokerages, internet-based brokerages and smaller niche
companies competing in local areas. Competition is particularly intense in the densely populated metropolitan areas in which we operate.
In addition, in the real estate brokerage industry, new participants face minimal barriers to entry into the market. We also compete for
the services of qualified licensed agents as well as franchisees. The ability of our Company owned brokerage offices to retain agents
is generally subject to numerous factors, including the sales commissions, the training and coaching and technological support that they
receive and their perception of our brand value. Our largest competitors in the corporate-owned space include Compass Holdings, Inc. and
Fathom Holdings, Inc.

Our financial results
are affected directly by the operating results of franchisees and agents, over whom we do not have direct control.

Our real estate franchises
generate revenue in the form of monthly ongoing royalties and fees, including monthly broker fees tied to gross commissions, training
and technology fees charged to our franchisees. Our agents pay us dues out of their income from real estate transactions and new agents
split their transaction-based commissions with us. Accordingly, our financial results depend upon the operational and financial success
of our franchisees and their agents and our corporate agents, all of whom are independent contractors that we do not control. If industry
trends or economic conditions are not sustained or do not continue to improve, our franchisees’ and our agents’ financial
results could worsen, and our revenue may decline. We may also have to terminate franchisees more frequently in the future due to non-reporting
and non-payment