Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 117

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 117
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 annual dues and (iii) royalty fees. Initial
franchise fees consist of a fixed fee payable upon signing the franchise agreement. Annual dues are calculated at a fixed fee per agent
(prorated for any partial year) payable annually before the 10th day of January or within 10 days after each agent commences their association
with the franchise. Royalty fees are calculated as the greater of a (a) fixed percentage of gross commission income for the period which
is made up of all commissions, transaction fees, property management fees, and monthly fees earned by the Franchisee and the Franchisee’s
independent sales associates, agents, representatives, contractors, employees, partners, directors, officers, owners, or affiliates, regardless
of whether or not such individuals or affiliates are entitled to retain all or part of such gross commission income, or (b) a fixed monthly
fee.

F-12

Coaching Services

The Company provides mandatory training
and guidance to newly licensed agents for their first four sales transactions. For each of the four transactions the newly licensed agents
completes, La Rosa Coaching earns 7% for the brokerage who sponsors the agent, which may be La Rosa Realty, earns 10% of the commission.
Coaches also provide optional special education services throughout the year to agents.

Property Management

The Company provides property management
services on a contractual basis for owners who lease their residential properties. These services include managing daily operations of
the property, tenant background screening, overseeing the tenant application process, and accounting services. The Company is compensated
for its services through a flat monthly management fee. At the option of the owner, the Company can also facilitate and account for repair
and remodeling costs for properties under management. These costs are not included in the transaction price as the customer is the party
paying and receiving these services. Property management services represent a series of distinct daily services rendered over time. Consistent
with the transfer of control for distinct, daily services to the customer, revenue is recognized at the end of each period for the fees
associated with the services performed.

The amount of revenue recognized is
presented gross for any services provided by the Company, as it is under the Company’s control. This is evidenced by the Company’s
obligations for its performance and its ability to direct and redirect the work, as well as negotiate the value of such services.

Title Settlement and Insurance

The Company provides title services
Revenue from title insurance premiums is recognized at the closing of