Better Homes and Gardens Real Estate
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.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 15 loans (below the industry average).
- 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
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 Better Homes and Gardens Real Estate unit return on the cash you put in?
Unlevered ROIC · per unit
44%
In Yale's "attractive" band (30–60%)
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.
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 · 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 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
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.
Score breakdown · what drove the 63 / 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
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Better Homes and Gardens Real Estate · FDD (2026) PDF