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

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 25
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 to mortgages on the other hand. It is unclear as to whether the U.S. is currently
experiencing a “bursting bubble” from the unusual pent-up demand and move to remote work created by the Covid-19 pandemic
followed by the rapid and extreme mortgage rate hikes that has slowed the market in recent months. The best example of the bubble bursting
was the significant downturn in the U.S. residential real estate market between 2005 and 2011. While we believe we are well-positioned
to compete during a downturn, our business is affected by these cycles in the residential real estate market, which can make it difficult
to compare or analyze our financial performance effectively across successive periods.

Competition

The real estate brokerage
business is highly competitive. We primarily compete against other independent real estate brokerage agencies in our local markets as
well as the international and national real estate brokerage franchisors seeking to grow their franchise system. We compete against other
brokerages to attract transactional clients based on our personalized service with experienced brokers who know the local market, the
number and quality of listings, our brand and reputation and our marketing efforts. We also compete to attract real estate professionals
based on our brand and reputation, the quality of our training and coaching, our marketing efforts, our generous 100% commission “split”
for experienced brokers and our technology tools that make the brokers more efficient and productive.

Our largest national franchise
competitors in the U.S. include RE/MAX, Realogy Holdings Corp. (which operates several brands including Century 21 and Coldwell Banker),
Fathom Holdings Inc., and eXp World Holdings Inc. We believe that competition in the real estate brokerage franchise business is based
principally upon the reputational strength of the brand, the quality of the services offered to franchisees, and the amount of franchise-related
fees to be paid by franchisees.

We also face competition from
internet-based real estate brokers including Realtor.com, Fathom Holdings Inc., Redfin.com, and Zillow.com, brokers offering deeply discounted
commissions like Simple Showing Holdings, Inc., Houwzer LLC and Real Estate Exchange, Inc. (Rexhomes.com) and “flat fee” brokers
such as Homie Technology, Inc., Cottage Street Realty, LLC (FlatFeeGroup.com) and Trelora, Inc. These companies do not provide the same
personalized brokerage services that we do and emphasize low price and a do-it-yourself philosophy.

FPG