Bottom line
- Total investment $45K – $90K including a $25K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 12 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 Berkshire Hathaway HomeServices unit return on the cash you put in?
Unlevered ROIC · per unit
154%
Above typical band (30–60%)
Overview
About
Berkshire Hathaway HomeServices franchisees operate full-service residential real estate brokerage offices, managing agent recruitment, client transactions, compliance, and local marketing under the BHHS brand. Franchisees earn commissions on home sales while paying royalties based on gross revenue (declining from 6% to 2% annually) with a $15,000 annual minimum, plus national marketing and technology fees.
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 20 · 17 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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
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.
Score breakdown · what drove the 53 / 100 rating
- 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
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
32 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Berkshire Hathaway HomeServices · FDD (2023) PDF