Anchored Tiny Homes Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Anchored Tiny Homes is a construction franchise that builds and sells backyard accessory dwelling units and tiny homes. Franchisees run local operations, managing permitting, construction crews, and client projects.
FranchiseVerdict summary · 2026
A Anchored Tiny Homes franchise requires a total initial investment of $114K – $185K, including a $60K franchise fee. Per the 2024 FDD, average unit revenue was $1.7M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $114K – $185K
- 38th pct Business Serv…
- Avg gross sales
- $1.7M
- 1 outlet17th pct Business Serv…
- Royalty
- N/A
- Units
- 7
- 15th pct Business Serv…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $114K – $185K including a $60K franchise fee.
- RETURNSAverage unit revenue of $1.7M/year (median $1.7M).
- RISKVerdict B (Above average), verdict score 58/100 (higher is better). SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGRevenue data based on only 1 outlet. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Anchored Tiny Homes Franchising, LLC
- CEO title
- Chief Executive Officer
- Colton Paulhus
- Incorporated in
- WY
- HQ
- 4401 Hazel Avenue, Suite 225, Fair Oaks, California 95628
- Auditor
- Naper CPA Group (Omar Alnuaimi, CPA)
- Audited financials
- Franchisor revenue
- $1.9M
- vs $26K prior year
Overview
About
- CEO
- Colton Paulhus
- Headquarters
- CA
- Founded
- 2022
- FDD year
- 2024
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 46% below the typical business services franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $25K | $50K |
| Equipment, build-out, other | $29K | $76K |
| Total initial investment | $114K | $185K |
Source: Anchored Tiny Homes 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $114K – $185K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $50K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- Greater of 6% of Gross Sales or $3,500 per Territory per …
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Minimum Monthly Royalty Fee Requirement of $3,500 per Territory per month (not imposed during initial 12 months) |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $500 – $1K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 14% above the business services norm.
Based on a single outlet - not a system average
Source: FDD 2024 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$273K
16.0% margin
Unlevered ROIC
146%
EBITDA / total invested capital
Payback
8 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Anchored Tiny Homes unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
146%
Above the 30–60% band. Verify revenue is per-unit average
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Anchored Tiny Homes units return on equity?
Equity IRR · 5-yr
33.7%
4.28× MOIC
Year-1 DSCR
2.40×
EBITDA ÷ debt service
Equity required
$5.8M
on $15.4M purchase
Total debt
$9.6M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Based on a single outlet - not a system average
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- $1.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales and profit
- Sample size
- 1 outlet
- vs category median 35 · small
- Reported figure
- $1.7M
- A single outlet — not a range
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 9 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Revenue is 11.4x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.7M/year in gross sales. Revenue-to-investment ratio: 11.4x.
Fee burden
Total ongoing fee load of 7.0% — below the Business Services average of 11.9%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 1 outlet — treat as directional only.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services averages
How Anchored Tiny Homes Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 7
- Opened
- 5
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 4 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.
4
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $1.7M
- Median loan
- $184K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
- Typical loan rate
- 11.1%
- avg rate to borrowers
- vs industry
- 0.0%
- brand is above its industry ↑
- Jobs supported
- 41
- 2.5 per loan
- Lender concentration
- 60%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing Anchored Tiny Homes franchisees
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Anchored Tiny Homes's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Extreme early-stage growth (7 units), undisclosed financials, franchisor distress signals, and unverified profitability claims create substantial risk despite strong reported unit economics.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Naper CPA Group (Omar Alnuaimi, CPA)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 58 / 100 verdict
- 01MINOROnly 7 units in system with extreme 500% YoY growth suggests instability and unproven scalability
- 02HIGHGoing Concern status (False) indicates potential financial/operational distress at franchisor level
- 03MINORHigh royalty floor of $3,500/month (~$42k annually) creates significant fixed costs even during slow sales periods
- 04MEDItem 19 (Financial Performance Representations) not disclosed — cannot independently verify claimed $959k average net income
- 05MINORMassive gap between average revenue ($1.7M) and average net income ($959k) suggests 56% net margin claims lack supporting documentation
- 06HIGHTerritory protection meaningless if franchisor fails; going concern status contradicts long-term viability
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 300,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Sacramento County, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 64 hrs
- On-the-job training
- 29 hrs
- Training location
- Fair Oaks, California or franchisee's location
- Ongoing training
- Required
- Time to open
- 1 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- GoHighLevel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: GoHighLevel
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Anchored Tiny Homes · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Anchored Tiny Homes franchise?
The total investment to open a Anchored Tiny Homes franchise ranges from $114K – $185K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Anchored Tiny Homes franchise owners earn?
According to Item 19 of the Anchored Tiny Homes FDD, the average gross sales per unit is $1.7M. The median is $1.7M. Important context: Based on a single outlet - not a system average. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Anchored Tiny Homes FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Anchored Tiny Homes FDD and qualifies whose outlets they describe.
What is Anchored Tiny Homes's franchise failure rate?
Based on SBA 7(a) loan data, Anchored Tiny Homes has a charge-off rate of 0.0% across 10 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Anchored Tiny Homes franchise locations are there?
As of their most recent FDD filing, Anchored Tiny Homes has 7 total units in the United States, including 6 franchised units and 1 company-owned units. 5 new units were opened in the latest reporting year.
Is Anchored Tiny Homes a good franchise to buy?
FranchiseVerdict rates Anchored Tiny Homes as a B-grade franchise with a verdict score of 58 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Anchored Tiny Homes, you can request corrections or provide updated information.
Other Business Services franchises
Compare similar franchise opportunities in the Business Services category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.