Berkshire Hathaway HomeServices Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Berkshire Hathaway HomeServices is a residential real-estate brokerage franchise trading on the Berkshire Hathaway name. Franchisees run full-service offices recruiting and supporting agents, earning from commissions.
FranchiseVerdict summary · 2026
A Berkshire Hathaway HomeServices franchise requires a total initial investment of $45K – $90K, including a $25K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $45K – $90K
- 28th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 24th pct Real Estate
- Units
- 293
- 71st pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate 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 $45K – $90K including a $25K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 69/100 (higher is better).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BHH Affiliates, LLC
- Parent company
- HSF Affiliates LLC
- Ultimate parent
- Berkshire Hathaway Energy Company
- CEO title
- Chief Executive Officer and President
- Christy Budnick
- Incorporated in
- DE
- HQ
- 18500 Von Karman Avenue, Suite 400, Irvine, California 92612
- Auditor
- Marcum LLP
- Audited financials
- Franchisor revenue
- $102.8M
- vs $122.1M prior year
Overview
About
- CEO
- Christy Budnick
- Headquarters
- CA
- Founded
- 2012
- FDD year
- 2023
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 69% below the typical real estate franchise.
Source: FDD 2023 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $25K | $25K | |
| Launch and Post Launch Trainingnot refundable | $100 | $3K | |
| Exterior Signsnot refundable | $1K | $20K | |
| Stationery and Related Suppliesnot refundable | $2K | $5K | |
| Yard Signsnot refundable | $5K | $10K | |
| Grand Opening Advertisingnot refundable | $5K | $5K | |
| Computer Hardwarenot refundable | $1K | $4K | |
| Approved Broker Management System (computer software)not refundable | $3K | $5K | |
| Approved Software Support Expensesnot refundable | $100 | $1K | |
| Business Class Telephone Servicenot refundable | $20 | $50 | |
| Business Class Internet Accessnot refundable | $50 | $300 | |
| Real Property, whether Purchased or Leasednot refundable | $0 | $6K | |
| Furniture, Fixtures & Equipmentnot refundable | $0 | $5K | |
| Business Insurancenot refundable | $1K | — | |
| Agent Commissionsnot refundable | — | — | |
| Additional Funds - 3 Monthsnot refundable | $30 | $525 | |
| Total initial investment | $43K | $89K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $45K – $90K
- Top 40% of category vs category
- Liquid capital req'd
- $30 – $525
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 6.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- Declining percentage of Gross Revenue: 1% (0-$1M), 0.75% …
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Transfer fee | $1K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Berkshire Hathaway HomeServices makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Berkshire Hathaway HomeServices unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% — below the Real Estate average of 9.3%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System roughly stable (+1.2% 3-year CAGR) with 293 units.
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 Real Estate averages
How Berkshire Hathaway HomeServices Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 293
- Opened
- 24
- Last reporting year
- Closed
- 17
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 5.8%
- Company-owned
- 20
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- +1.2%
- Net unit change over 3 years
- 3-yr CAGR
- +1.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 24
- Closed (3yr)
- 13
- Terminated (3yr)
- 4
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 1.0%
- Owners selling to other franchisees
- Continuity rate
- 93.8%
- Units that stayed open
- Termination rate
- 1.4%
- Franchisor-initiated terminations
- Ceased ops
- 4.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Material antitrust litigation targeting the real estate industry's compensation structure, combined with undisclosed financials and unprotected territory, creates substantial regulatory and competitive risk for franchisees.
Litigation (Item 3)
Four putative class action lawsuits challenging the practice of requiring selling brokers to offer uniform compensation to buyer brokers (Moehrl, Burnett/Sitzer, Nosalek, and Leeder/Batton cases)
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Marcum LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited consolidated financials of parent HSF Affiliates LLC, fiscal year ended December 31, 2022 (in thousands; converted to dollars). Total revenues comprise royalty fees-net ($61,772K), revenue from related parties ($36,762K), and other revenue-net ($4,313K). Prior year (2021) total revenues were $122,127K.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 69 / 100 verdict
- 01MINORFour active putative class action lawsuits challenging core business model (buyer broker compensation practices) create existential regulatory risk
- 02MINORNo Item 19 financial disclosure means prospective franchisees cannot verify claimed profitability or validate $45k-$90k investment ROI
- 03MINORSlow unit growth (3.0% YoY) with 293 total units suggests mature/declining system; minimal franchisee recruitment confidence
- 04MINORUnprotected territory creates direct competition risk from other BHHS franchisees and company-owned offices
- 05MINORDeclining royalty floor ($15k minimum) despite low unit growth indicates potential cash flow stress at corporate level
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 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | DE |
| Litigation count | 4 |
View Item 3 litigation summary
Four putative class action lawsuits challenging the practice of requiring selling brokers to offer uniform compensation to buyer brokers (Moehrl, Burnett/Sitzer, Nosalek, and Leeder/Batton cases)
Items 10, 11
Training & Operations
- Classroom training
- 27 hrs
- On-the-job training
- 0 hrs
- Training location
- Phone/Webinar (pre-launch); local hotel or online (post-launch)
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Offered
- Item 10
- POS system
- Approved Broker Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Approved Broker Management System
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Berkshire Hathaway HomeServices · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Berkshire Hathaway HomeServices franchise?
The total investment to open a Berkshire Hathaway HomeServices franchise ranges from $45K – $90K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Berkshire Hathaway HomeServices franchise owners earn?
Berkshire Hathaway HomeServices makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Berkshire Hathaway HomeServices 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 Berkshire Hathaway HomeServices FDD and qualifies whose outlets they describe.
What is Berkshire Hathaway HomeServices's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Berkshire Hathaway HomeServices (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Berkshire Hathaway HomeServices franchise locations are there?
As of their most recent FDD filing, Berkshire Hathaway HomeServices has 293 total units in the United States, including 256 franchised units and 20 company-owned units. 24 new units were opened in the latest reporting year.
Is Berkshire Hathaway HomeServices a good franchise to buy?
FranchiseVerdict rates Berkshire Hathaway HomeServices as a B-grade franchise with a verdict score of 69 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.