What kind of TCPA claims could Better Homes And Gardens Real Estate be subject to?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
Examples of other legal matters involving the Company may include but are not limited to:
antitrust and anti-competition claims, including claims alleging exclusionary conduct or boycotts, among others;
TCPA claims;
claims alleging violations of RESPA, state consumer fraud statutes, federal consumer protection statutes or other state real estate law violations;
employment law claims, including claims that independent residential real estate sales agents engaged by our company owned brokerages or by affiliated franchisees—under certain state or federal laws—are potentially employees instead of independent contractors, and they or regulators therefore may bring claims against our Owned Brokerage Group for breach of contract, wage and hour classification claims, wrongful discharge, unemployment and workers' compensation and could seek benefits, back wages, overtime, indemnification, penalties related to classification practices and expense reimbursement available to employees or make similar claims against Franchise Group as an alleged joint employer of an affiliated franchisee's independent sales agents;
other employment law matters, including other types of worker classification claims as well as wage and hour claims and retaliation claims;
claims alleging violations of consumer protection laws;
claims regarding non-competition, non-solicitation and restrictive covenants together with claims of tortious interference and other improper recruiting conduct;
information privacy and security claims, including claims under new and emerging data privacy laws related to the protection of customer, employee or third-party information, claims related to the implementation of various consumer opt-out rights, and claims under biometric data laws such as the Illinois Biometric Information Privacy Act;
cyber-crime claims, including claims related to the diversion of homesale transaction closing funds;
vicarious or joint liability claims based upon the conduct of individuals or entities traditionally outside of our control, including franchisees and independent sales agents, under joint employer claims or other theories of actual or apparent agency;
claims by current or former franchisees that franchise agreements were breached, including improper terminations;
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Better Homes And Gardens Real Estate's 2025 Franchise Disclosure Document, the company may be subject to TCPA (Telephone Consumer Protection Act) claims. This means that Better Homes And Gardens Real Estate, as well as its franchisees, could potentially face lawsuits or legal action related to unsolicited telemarketing calls, text messages, or faxes to consumers. These claims often arise from allegations that the company or its representatives did not obtain proper consent before contacting individuals, or that they violated other TCPA regulations.
For a prospective franchisee, this highlights the importance of ensuring compliance with all telemarketing and communication laws. Franchisees must implement procedures to obtain proper consent before contacting potential customers via phone or text, maintain accurate records of consent, and train employees and agents on TCPA regulations. Failure to comply with these laws can result in significant financial penalties and legal liabilities for both the franchisee and the franchisor.
Better Homes And Gardens Real Estate's parent company, Anywhere Real Estate Inc., acknowledges that insurance carriers may dispute coverage for certain types of claims, including TCPA litigation. Even if coverage is provided, it may not cover the full amount of losses incurred. This underscores the need for franchisees to proactively manage their compliance efforts and to secure adequate insurance coverage to protect against potential TCPA claims. Franchisees should consult with legal counsel and insurance professionals to ensure they have appropriate policies and procedures in place to minimize their risk.
Furthermore, the FDD indicates that Anywhere Real Estate Inc. has entered into settlements for various legal matters, including a $20 million settlement in January 2025, although the specific details of this settlement are not provided in this excerpt. The document also mentions ongoing antitrust litigation and other types of claims that the company faces. While these matters may not directly relate to TCPA claims, they demonstrate the importance of understanding the legal landscape and potential liabilities associated with operating a real estate franchise. Franchisees should carefully review the FDD and consult with legal counsel to assess their potential exposure to various types of legal claims and to develop strategies for managing these risks.