Best Choice RoofingFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Best Choice Roofing franchise requires a total initial investment of $117K – $193K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $7.5M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $117K – $193K
- 41st pct Home Services
- Avg gross sales
- $7.5M
- 52nd pct Home Services
- Royalty
- 6.0%
- 13th pct Home Services
- Units
- 63
- 45th pct Home Services
- SBA default
- N/A
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 48.5x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 18 to 0 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $117K – $193K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $7.5M/year (median $7.9M). Estimated payback in 0.1 years (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 52/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Best Choice Roofing Franchising, LLC
- Incorporated in
- TN
- HQ
- 105 Hazel Path, Hendersonville, Tennessee 37075
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $267K
- vs $1.4M prior year
Overview
About
Best Choice Roofing franchisees operate residential and commercial roofing installation, repair, and inspection services. Day-to-day activities include managing crews, scheduling jobs, managing customer relationships, handling materials procurement, and overseeing roofing projects from estimation through completion. Franchisees are responsible for local marketing, licensing compliance, and maintaining service quality standards across their protected territory.
- CEO
- Wayne Holloway
- Headquarters
- TN
- Founded
- 2020
- FDD year
- 2024
- States available
- 12
FDD Item 7 · 2024 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $60K | $60K | |
| Travel & Living Expenses While Attending Initial Training | $5K | $10K | |
| Rent & Security Deposit (3 Months) | $3K | $7K | |
| Leasehold Improvements | $0 | $15K | |
| Equipment | $0 | $1K | |
| Furniture, Office Equipment & Software | $4K | $9K | |
| Vehicle | $0 | $13K | |
| Signs | $500 | $1K | |
| Licenses | $200 | $3K | |
| Grand Opening Marketing | $5K | $10K | |
| Insurance | $3K | $4K | |
| Owens Corning Membership | $3K | $3K | |
| Professional Fees (Legal and Accounting) | $1K | $3K | |
| Initial Marketing Materials | $11K | $11K | |
| New Hire Kits and Uniforms | $200 | $500 | |
| Call Center Fee | $3K | $3K | |
| 101K TV Fee | $210 | $210 | |
| Additional Funds (for first 3 months) | $20K | $50K | |
| Total initial investment | $117K | $202K |
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.
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
$753K
10.0% margin
Unlevered ROIC
396%
EBITDA / total invested capital
Payback
3 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $117K – $193K
- Near category avg vs category
- Liquid capital req'd
- $20K – $50K
- Near category avg vs category
- Franchise fee
- $60K – $345K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 0.1 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $151 |
| Training fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $7.5M
- Per unit, per year
- Median gross sales
- $7.9M
- Avg p&l bottom line
- $2.0M
- Reported as P&L Bottom Line in FDD Item 19
- Item 19 type
- Actual
- Sample size
- 24 units
- vs category median 25
- Range (low → high)
- $1.6M→$15.5M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 349 Home Services brands
Revenue is 48.5x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Home Services averages
How Best Choice Roofing Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 63
- Opened
- 14
- Last reporting year
- Closed
- 2
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.2%
- Company-owned
- 45
- Corporate units in the system
- % franchised
- 29%
- vs corporate-owned
- Net growth (yr3)
- +200.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
- Termination rate
- 3.2%
- Franchisor-initiated terminations
- Ceased ops
- 3.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 15
- Loan volume
- $2.7M
- Median loan
- $190K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Best Choice Roofing's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapid expansion with active litigation and unresolved Going Concern status indicates operational instability despite strong aggregate financials; recommend extreme caution until franchisor transparency improves.
Litigation (Item 3)
Franchisor filed suit against former licensees for breach of contract, trademark infringement, and unfair competition (settled). Franchisor filed suit against former franchisee for breach of contract and restrictive covenant violations in Arkansas (settled July 31, 2023), then filed second suit in Tennessee for breach of settlement agreement (ongoing as of disclosure date).
Bankruptcy (Item 4)
Disclosed in last 7 years
Chapter 13 bankruptcy petition filed June 6, 2018. Case No. 3:18-bk-03774 (M.D. Tenn.). Plan completed October 5, 2022. Discharge entered October 28, 2022. Case closed January 17, 2023.
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 52 / 100 rating
- 01HIGHGoing Concern status is False — indicates franchisor financial distress or structural issues despite positive aggregate numbers
- 02MINORAggressive unit growth of 200% YoY is unsustainable and suggests recruitment-heavy model rather than organic profitability; high churn risk
- 03HIGHTwo active/recent litigation cases involving breach of contract and trademark disputes signal franchisor-franchisee relationship dysfunction and legal exposure
- 04MEDNo Item 19 (Financial Performance Representations) disclosed — cannot validate if $1.97M net income claim is achievable for typical franchisee
- 05MINORHigh franchise fee ($59,500) combined with 6% royalty creates significant startup burden; breakeven depends on undocumented performance data
- 06HIGHExplosive growth (63 units, 200% YoY) combined with litigation suggests system may be adding unprofitable units or experiencing early terminations
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Household count |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Hendersonville, Tennessee |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 2 |
View Item 3 litigation summary
Franchisor filed suit against former licensees for breach of contract, trademark infringement, and unfair competition (settled). Franchisor filed suit against former franchisee for breach of contract and restrictive covenant violations in Arkansas (settled July 31, 2023), then filed second suit in Tennessee for breach of settlement agreement (ongoing as of disclosure date).
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 21 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- POS system
- QuickBooks Enterprise
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Enterprise
Item 20 · call current owners
Franchisee Contacts
50 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Best Choice Roofing · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Best Choice Roofing franchise?
The total investment to open a Best Choice Roofing franchise ranges from $117K – $193K, 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 Best Choice Roofing franchise owners earn?
According to Item 19 of the Best Choice Roofing FDD, the average gross sales per unit is $7.5M. The median is $7.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Best Choice Roofing's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Best Choice Roofing (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 Best Choice Roofing franchise locations are there?
As of their most recent FDD filing, Best Choice Roofing has 63 total units in the United States, including 18 franchised units and 45 company-owned units. 14 new units were opened in the latest reporting year.
Is Best Choice Roofing a good franchise to buy?
FranchiseVerdict rates Best Choice Roofing as a A-grade franchise with a risk score of 52 out of 100, 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.
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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.