Better Homes and Gardens Real Estate Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Better Homes and Gardens Real Estate is a residential brokerage franchise trading on the lifestyle brand. Franchisees run local offices recruiting and supporting agents, earning from commission splits on home sales.
FranchiseVerdict summary · 2026
A Better Homes and Gardens Real Estate franchise requires a total initial investment of $34K – $269K, including a $25K franchise fee and an ongoing 5.0% 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: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $34K – $269K
- 16th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 12th pct Real Estate
- Units
- 362
- 73rd 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 $34K – $269K including a $25K franchise fee, 5.0% 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 D (Below average), verdict score 33/100 (higher is better).
- LEGAL10 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Better Homes and Gardens Real Estate LLC
- Parent company
- Anywhere Real Estate Services Group LLC
- Ultimate parent
- Compass, Inc. (d/b/a Compass International Holdings)
- CEO title
- President and Chief Executive Officer
- Ginger Wilcox
- Incorporated in
- DE
- HQ
- 175 Park Avenue, Madison, New Jersey 07940
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $6.0B
- vs $5.7B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Ginger Wilcox
- Headquarters
- NJ
- Founded
- 2007
- FDD year
- 2026
- States available
- 14
Can you afford it, and what does the money buy?
Entry cost runs 31% below the typical real estate franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $0 | $25K | |
| Real Estate | — | — | |
| Leasehold Improvements | $0 | $105K | |
| Building Signs | $750 | $25K | |
| Yard Signs | $2K | $6K | |
| Frames/Posts | $3K | $5K | |
| Open House Signs | $800 | $2K | |
| Miscellaneous Rider Signs | $250 | $500 | |
| Name Badges | $120 | $400 | |
| Miscellaneous | $250 | $500 | |
| Printed Materials | $5K | $8K | |
| Insurance | $500 | $4K | |
| Legal Expenses | $0 | $4K | |
| Orientation - Travel Expenses and Costs | $0 | $5K | |
| Computer Equipment for Electronic Data Transfer System | $6K | $12K | |
| Independent Broker Website | $0 | $10K | |
| Multiple Listing Services | $0 | $3K | |
| Data Feed Transmission | $0 | $5K | |
| Other Advertising, including Grand Opening Event | $0 | $10K | |
| Additional Funds (first 3 months after opening) | $15K | $40K | |
| Total initial investment | $34K | $269K |
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
- $34K – $269K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $40K
- Middle of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $3K |
| Transfer fee | $5K |
| Total fee load | 6.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Better Homes and Gardens Real Estate 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 Better Homes and Gardens Real Estate 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, 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: 2026 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 6.5% — 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 contracting at -10.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 15% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Better Homes and Gardens Real Estate Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 362
- Opened
- 35
- Last reporting year
- Closed
- 28
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 7
- Term expired, not renewed (per Item 20)
- Turnover rate
- 37.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 15.4%
- Net growth (3-yr)
- -10.4%
- Net unit change over 3 years
- 3-yr CAGR
- -10.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 102
- Closed (3yr)
- 89
- Terminated (3yr)
- 27
- Non-renewed (3yr)
- 20
- Transfers (3yr)
- 11
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 1.4%
- Owners selling to other franchisees
- Continuity rate
- 89.8%
- Units that stayed open
- Termination rate
- 3.6%
- Franchisor-initiated terminations
- Ceased ops
- 7.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 44 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
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
Better Homes and Gardens Real Estate presents HIGH RISK due to a shrinking franchise system, pervasive antitrust and compliance litigation that threatens business model viability, zero financial transparency, unprotected territories, and parent company merger uncertainty.
Litigation (Item 3)
Pending: TCPA class action (Owen-Brooks). Other pending: antitrust class actions relating to NAR buyer broker commission rules (Moehrl, Burnett, Nosalek, Batton/Tuccori, Chinitz TCPA, Homie Technology, Anywhere/Compass merger litigation). Resolved: RESPA class action (Dodge/Agrawal, settled $8.375M). Regulatory: Washington AG investigation into real estate broker competition practices.
Largest disclosed settlement: $83,500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financial statements are the consolidated audited statements of the guarantors Anywhere Real Estate Inc. and Anywhere Real Estate Group LLC (BHGRE's parents), not BHGRE LLC's own. Figures in millions for FY ended Dec 31, 2025 (yr1) and 2024 (yr2). Net revenues 2025 = $5,960M (Gross commission income $4,849M, Service revenue $607M, Franchise fees $372M, Other $132M). Net loss 2025 = $(89)M; net loss attributable to parent = $(90)M. Auditor report is present (signed Florham Park, NJ, Feb 25, 2026) but the CPA firm name was not extractable as text (likely a logo image).
ⓘ 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: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 33 / 100 verdict
- 01MINORDeclining unit count (-1.6% YoY) indicates a contracting franchise system with potential saturation or franchisee attrition
- 02MEDFive active antitrust class-action lawsuits directly targeting real estate commission structures and franchisor practices create existential legal/regulatory risk
- 03MEDNo Item 19 financial performance disclosure (Avg Revenue/Net Income not disclosed) prevents informed ROI analysis and suggests either poor performance or franchisor non-compliance
- 04HIGHMultiple TCPA litigation cases indicate systemic compliance issues with marketing practices that could result in franchisor liability passed to franchisees
- 05MEDUnprotected territory means unlimited local competition from other BH&G agents and competing franchises, directly limiting revenue potential
- 06HIGHParent company merger litigation (Anywhere Real Estate + Compass 2026) creates uncertainty about franchisor stability, support, and strategic direction
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · 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 | Required |
| Right of first refusalℹ | Yes |
| RoFR response window | 120 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 10 |
View Item 3 litigation summary
Pending: TCPA class action (Owen-Brooks). Other pending: antitrust class actions relating to NAR buyer broker commission rules (Moehrl, Burnett, Nosalek, Batton/Tuccori, Chinitz TCPA, Homie Technology, Anywhere/Compass merger litigation). Resolved: RESPA class action (Dodge/Agrawal, settled $8.375M). Regulatory: Washington AG investigation into real estate broker competition practices.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual (2026); headquartes in Madison, NJ when in-person
- Ongoing training
- Required
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 1 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Dash
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Dash
Item 20 · call current owners
Franchisee Contacts
287 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Better Homes and Gardens Real Estate · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Better Homes and Gardens Real Estate franchise?
The total investment to open a Better Homes and Gardens Real Estate franchise ranges from $34K – $269K, 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 Better Homes and Gardens Real Estate franchise owners earn?
Better Homes and Gardens Real Estate 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 Better Homes and Gardens Real Estate 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 Better Homes and Gardens Real Estate FDD and qualifies whose outlets they describe.
What is Better Homes and Gardens Real Estate's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Better Homes and Gardens Real Estate (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 Better Homes and Gardens Real Estate franchise locations are there?
As of their most recent FDD filing, Better Homes and Gardens Real Estate has 362 total units in the United States, including 362 franchised units and 0 company-owned units. 35 new units were opened in the latest reporting year.
Is Better Homes and Gardens Real Estate a good franchise to buy?
FranchiseVerdict rates Better Homes and Gardens Real Estate as a D-grade franchise with a verdict score of 33 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.