On Thursday, La Rosa Holdings Corp LRHC announced that it has acquired a 100% interest in the company's franchisee - La Rosa Realty North Florida LLC ("Realty North Florida"), located in Jacksonville, Florida.
What Happened? Realty North Florida generated revenue of $4.3 million and positive cash flow from operations, excluding executive management costs in 2022.
The franchisee provides residential and commercial real estate brokerage services. It also provides coaching and support services to agents on a fee basis.
Also Read: EXCLUSIVE: La Rosa Acquires Majority Stake In Fourth Real Estate Brokerage Franchisee
Why Does It Matter? Joe La Rosa, CEO of the company, commented, "We continue to successfully implement our roll-up strategy of acquiring profitable franchisees, consolidating our position in the market, and creating value for both shareholders and clients. Realty North Florida was quite profitable in 2022, excluding certain payouts to the executive management."
"Following the acquisition, we will continue to provide our revenue share model to the top agents in the office, which is structured to ensure a high retention rate," La Rosa added.
"We have several more franchisees in the pipeline that we plan on acquiring over the next several months, which brings us closer to our goal of reaching an annualized revenue run rate of $100 million before the end of 2024."
Price Action: LRHC shares traded lower by 1.97% at $1.49 premarket on the last check Thursday.
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