Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 306

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 306
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 is regulated by various state laws as well as by the Federal Trade Commission (the “FTC”) that generally require that franchisors make extensive disclosure to prospective franchisees and several states have “franchise relationship laws” or “business opportunity laws” that limit the ability of franchisors to terminate franchise agreements or to withhold consent to the renewal or transfer of these agreement;

    ●
    restrictions on transactions with persons on the Specially Designated Nationals and Blocked Persons list promulgated by the Office of Foreign Assets Control of the Department of the Treasury;

    ●
    the Fair Housing Act;

    ●
    state and federal employment laws and regulations, including any changes that would require classification of independent contractors to employee status, and wage and hour regulations;

    ●
    federal and state, “Do Not Call,” “Do Not Fax,” and “Do Not E-Mail” laws;

    ●
    laws and regulations in jurisdictions outside the U.S. in which we do business; and

    ●
    consumer fraud statutes that are broadly written.

Federal, state and local regulatory
authorities also have relatively broad discretion to grant, renew and revoke licenses and approvals and to implement regulations. Accordingly,
such regulatory authorities could prevent or temporarily suspend our Company owned brokerages or our franchisees from carrying on some
or all of our activities or otherwise penalize them if their financial condition or our practices were found not to comply with the then
current regulatory or licensing requirements or any interpretation of such requirements by the regulatory authority. Our failure to comply
with any of these requirements or interpretations could limit our ability to renew current franchisees or sign new franchisees or otherwise
have a material adverse effect on our operations.

We might not be aware of all
the laws, rules and regulations that govern our business, or be able to comply with all of them, given the rate of regulatory changes,
ambiguities in regulations, contradictions in laws and regulations between jurisdictions, and the difficulties in achieving both Company-wide
and region-specific knowledge and compliance. If we fail, or we have been alleged to have failed, to comply with any existing or future
applicable laws, rules and regulations, we could be subject to lawsuits and administrative complaints and proceedings, as well as criminal
proceedings. Our noncompliance could result in significant defense costs, settlement costs, damages and penalties.

25

Adverse U.S. and global
market, economic and political conditions, including the ongoing conflict between Ukraine and Russia, recent events in the Middle East
and