Bottom line
- Total investment $123K – $137K including a $250K franchise fee, 50.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 69/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Alair Homes Master Franchises unit return on the cash you put in?
Unlevered ROIC · per unit
-146%
Negative
Overview
About
Franchisees operate residential home renovation and building businesses under the Alair Homes brand, managing client projects from design consultation through construction completion. They handle project bidding, subcontractor coordination, material sourcing, and quality control while paying the franchisor 50% of net payments received from clients. This is a service-based, project-dependent model with no recurring revenue, high capital requirements, and significant operational complexity.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 10 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
10
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Alair Homes presents significant financial transparency gaps, unsustainable royalty terms, and system stability concerns that make this a speculative, high-risk franchise opportunity.
Score breakdown · what drove the 69 / 100 rating
- 01MINOR50% royalty on net payments is extraordinarily high and will severely compress franchisee profitability
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents validation of ROI claims
- 03HIGHGoing Concern = False indicates corporate entity financial instability or structural weakness
- 04MINOROnly 16 units with unknown growth trajectory suggests stagnant or declining system
- 05HIGHLitigation involving breach of non-compete and incomplete work indicates quality control and legal enforcement issues
- 06MINORHigh franchise fee ($250,000) combined with 50% royalty creates unsustainable cost structure for most home service businesses
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Alair Homes Master Franchises · FDD (2022) PDF