FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for AR HOMES®.
Based on 2025 FDD · 4 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a AR HOMES® franchise shows an estimated initial investment of $535K – $2.2M. Reported owner economics show $1.6M. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $65K franchise fee · 4.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
AR HOMES® requires a total initial investment of $535K to $2.2M (midpoint approximately $1.4M), with an initial franchise fee of $65K. The ongoing fee burden is 4.5% . This is below the industry average of approximately 28.4%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for AR HOMES® locations is $10.4M. The implied franchisee EBITDA is approximately $1.6M, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 117.8% with a payback period of approximately 0.8 years.
AR HOMES® operates approximately 42 franchised units. Unit count is relatively stable with a 0.0% year-over-year change. The SBA 7(a) loan default rate of 0.0% is in line with industry norms of approximately 1.8%.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2023-2025). 2 loans across 1 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
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