Best Choice Roofing Franchise Cost, Revenue & Review 2026
- Investment
- $117K – $193K
- Disclosed sales
- $7.5M
- gross sales, not profit
- SBA charge-off
- Limited · 15 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Best Choice Roofing is a residential and commercial roofing franchise focused on replacements, repairs, and storm-damage work. Franchisees run local operations, managing crews, estimates, insurance claims, and project delivery.
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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $117K – $193K
- 42nd pct Home Services
- Avg gross sales
- $7.5M
- Incl. company outlets24th pct Home Services
- Royalty
- 6.0%
- 21st pct Home Services
- Units
- 63
- 50th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · 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 $117K – $193K including a $60K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $7.5M/year (median $7.9M) (includes company-owned outlets). Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- GROWTHPositive: net +12 franchised outlets in the latest year (14 opened, 2 closed); 14 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Best Choice Roofing Franchising, LLC
- Parent company
- Best Choice Roofing & Home Improvement, Inc.
- FDD Item 1, page 8 of the 2024 FDD
- Predecessor
- Best Choice Roofing & Home Improvement, Inc.
- Prior franchisor entity
- CEO title
- Founder and President
- Wayne Holloway
- Incorporated in
- TN
- HQ
- 105 Hazel Path, Hendersonville, TN 37075
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
Overview
About
- CEO
- Wayne Holloway
- Headquarters
- TN
- Founded
- 2020
- FDD year
- 2024
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 8% below the typical home services franchise.
Source: FDD 2024 · Items 5–7
The filing's Item 7 TOTAL row prints $117,410 to $193,010. Its own line items add to $117,410 to $202,010. The total is shown as the franchisor printed it; the lines are listed as printed. ONE TERRITORY table (pp.21-22; Best Choice Roofing Franchising 2024 FDD).
Full Item 7 breakdown18 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $117K – $193K
- Middle of category vs category
- Liquid capital req'd
- $20K – $50K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 0.0% |
| Technology fee | $151 |
| Training fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 1183% above the home services norm.
Includes company-owned outlets
Source: FDD 2024 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Best Choice Roofing until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$190K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Best Choice Roofing 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 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.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Includes company-owned outlets
- Avg gross sales
- $7.5M
- Per unit, per year
- Median gross sales
- $7.9M
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 revenue plus pnl
- Sample size
- 24 outlets
- vs category median 32
- Range (low → high)
- $1.6M→$15.5MCited, not corroborated — printed on page 50 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- 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 4 / 10 · above
Compared against 319 Home Services brands
Revenue is 48.5x 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 $7.5M/year in gross sales. Revenue-to-investment ratio: 48.5x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 9.0% (near the Home Services median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
Net unit growth of +200.0% over 3 years (14 opened, 2 closed).
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 Home Services medians
How Best Choice Roofing Compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
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 (3-yr)
- +200.0%
- Net unit change over 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 14
- 0.22 per open outlet · Item 20 Table 5
- Projected new
- 14
- Franchisor's next-year forecast
- 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 12 · 12 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.
12
states with franchisees (per FDD Item 12)
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
- Limited · 15 loans
- Limited SBA coverage: 15 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 15 loans
- 5-yr charge-off
- Limited · 15 loans
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
- Typical loan rate
- 10.8%
- avg rate to borrowers
- vs industry
- 17.4%
- NAICS 238160
- Jobs supported
- 139
- 5.8 per loan
- Lender concentration
- 58%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing Best Choice Roofing franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Best Choice Roofing from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 68%
- Avg interest rate
- 10.79%
- Lender concentration
- 58.3%
- Job velocity
- 5.8 per $100K
- NAICS benchmark
- 17.4%
- NAICS 238160
- Jobs supported
- 139
Top SBA lendersTop lender holds 58% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 7 | $1.3M | N/A |
| 2 | American Bank | 2 | $394K | N/A |
| 3 | Zions Bank, A Division of | 1 | $233K | N/A |
| 4 | First Bank of the Lake | 1 | $297K | N/A |
| 5 | Newtek Bank, National Association | 1 | $150K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| LALouisiana | 2 | 0 | -- |
| MNMinnesota | 2 | 0 | -- |
| NYNew York | 2 | 0 | -- |
| OHOhio | 2 | 0 | -- |
| CTConnecticut | 1 | 0 | -- |
| MIMichigan | 1 | 0 | -- |
| TXTexas | 1 | 0 | -- |
| UTUtah | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Case 1: BCR & Home Improvement v. Best Choice Roofing Savannah & Augusta (2018) - breach of contract/trademark infringement; settled with monetary payment. Case 2: BCR Franchising v. Herron et al (2023, refiled 2024) - breach of franchise agreement restrictive covenants; Tennessee lawsuit ongoing.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
CFO Andrea Morris filed Chapter 13 bankruptcy petition on June 6, 2018 (Case No. 3:18-bk-03774). Plan completed October 5, 2022; discharge entered October 28, 2022; case closed January 17, 2023.
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
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: No
Score breakdown · what drove the 50 / 100 verdict
- 01MINORAggressive unit growth of 200% YoY is unsustainable and suggests recruitment-heavy model rather than organic profitability; high churn risk
- 02HIGHTwo active/recent litigation cases involving breach of contract and trademark disputes signal franchisor-franchisee relationship dysfunction and legal exposure
- 03MINORHigh franchise fee ($59,500) combined with 6% royalty creates significant startup burden; breakeven depends on undocumented performance data
- 04HIGHExplosive 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
What are you signing up for?
Ongoing fees run about 9.0% 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 territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Approximately 100,000 single-family homes per territory |
| 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 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Hendersonville, Tennessee |
| Jury trial waiver | Yes |
| Governing law | TN |
| Litigation count | 2 |
View Item 3 litigation summary
Case 1: BCR & Home Improvement v. Best Choice Roofing Savannah & Augusta (2018) - breach of contract/trademark infringement; settled with monetary payment. Case 2: BCR Franchising v. Herron et al (2023, refiled 2024) - breach of franchise agreement restrictive covenants; Tennessee lawsuit ongoing.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 21 hrs
- Training location
- Hendersonville, TN
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- QuickBooks Enterprise
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Enterprise
Item 20 · call current owners
Franchisee Contacts
36 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Best Choice Roofing?
Best Choice Roofing is franchised by Best Choice Roofing Franchising, LLC. Its parent company is Best Choice Roofing & Home Improvement, Inc.. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Best Choice Roofing 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 Best Choice Roofing FDD and qualifies whose outlets they describe.
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 B-grade franchise with a verdict score of 50 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.