Better Homes and Gardens Real EstateFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Better Homes and Gardens Real Estate franchise requires a total initial investment of $34K – $457K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $34K – $457K
- 15th pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- 5.0%
- 11th pct Real Estate
- Units
- 362
- 62nd pct Real Estate
- SBA default
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate 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
14 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $34K – $457K including a $25K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100.
- 14 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
- Legal entity
- Better Homes and Gardens Real Estate LLC
- Parent company
- Compass, Inc.
- 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
- $5.6B
- vs $6.0B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Better Homes and Gardens Real Estate franchisees operate local real estate brokerage offices, managing agents who buy/sell residential properties, generating revenue through commission splits on transactions. Franchisees handle compliance, training, technology, and local marketing while paying royalties (5-6% of gross revenue, capped) to the franchisor. Daily operations include recruiting/retaining agents, managing transaction pipelines, and competing for market share in an increasingly commoditized industry.
- CEO
- Ginger Wilcox
- Headquarters
- NJ
- Founded
- 2007
- FDD year
- 2026
- States available
- 46
FDD Item 7 · 2026 filing · 20 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 – $457K
- Better than avg vs category
- Liquid capital req'd
- $15K – $60K
- Near category avg vs category
- Franchise fee
- $25K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.5%
- 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 | 1.5% of gross sales |
| Technology fee | $3K |
| Transfer fee | $5K |
| Total fee load | 6.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Real Estate averages
How Better Homes and Gardens Real Estate Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 362
- Opened
- 35
- Last reporting year
- Closed
- 41
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 7
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 15.4%
- Net growth (yr3)
- -1.6%
- Net unit change last year
- 3-yr CAGR
- -10.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
- 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 · 27 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.
- Total loans
- 15
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- 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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Two pending class action lawsuits: (1) Susan Juanita Owen-Brooks v. Better Homes and Gardens Real Estate LLC alleging TCPA violations for text messages sent by franchisee's sales associate to consumers on Do Not Call Registry (filed Sept 18, 2025, motion to dismiss pending); (2) Christopher Moehrl v. NAR and others including franchisor alleging Sherman Act conspiracy regarding buyer broker commission policies and MLS anticompetitive practices (filed March 6, 2019).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 57 / 100 rating
- 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
- 07MINORWide investment range ($33,970–$456,600) suggests highly variable franchisee profitability and unclear cost structures
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 |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| 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 | New Jersey |
| Litigation count | 14 |
View Item 3 litigation summary
Two pending class action lawsuits: (1) Susan Juanita Owen-Brooks v. Better Homes and Gardens Real Estate LLC alleging TCPA violations for text messages sent by franchisee's sales associate to consumers on Do Not Call Registry (filed Sept 18, 2025, motion to dismiss pending); (2) Christopher Moehrl v. NAR and others including franchisor alleging Sherman Act conspiracy regarding buyer broker commission policies and MLS anticompetitive practices (filed March 6, 2019).
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual
- Field support
- 0 hrs/yr
- On-site visits per year
- POS system
- Dash
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Dash
Item 20 · call current owners
Franchisee Contacts
100 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 – $457K, 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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 B-grade franchise with a risk score of 57 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.