Buddy’s Home Furnishings Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Buddy's Home Furnishings is a rent-to-own retail franchise offering furniture, appliances, and electronics on flexible lease-to-own terms. Franchisees run stores managing leases, deliveries, payments, and merchandise.
FranchiseVerdict summary · 2026
A BUDDY’S HOME FURNISHINGS franchise requires a total initial investment of $376K – $798K, including a $25K – $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $731K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 12 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $376K – $798K
- 39th pct Retail
- Avg gross sales
- $731K
- 6th pct Retail
- Royalty
- 6.0%
- 18th pct Retail
- Units
- 223
- 36th pct Retail
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail 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 $376K – $798K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $731K/year (median $670K).
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BHF Franchising, LLC
- Parent company
- BHF Operating Company, LLC
- Predecessor
- Buddy's Franchising and Licensing LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Michael Bennett
- Incorporated in
- DE
- HQ
- 8529 Southpark Circle, Suite 410, Orlando, Florida 32819
- Auditor
- Rivero, Gordimer & Company, P.A.
- Audited financials
Overview
About
- CEO
- Michael Bennett
- Headquarters
- FL
- Founded
- 2026
- FDD year
- 2026
- States available
- 23
Can you afford it, and what does the money buy?
Entry cost runs 42% above the typical retail franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Leasehold Improvementsnot refundable | $2K | $109K | |
| Furniture, Fixtures and Equipmentnot refundable | $12K | $25K | |
| Computer Systemnot refundable | $3K | $4K | |
| Signsnot refundable | $500 | $3K | |
| Three Months' Rentnot refundable | $7K | $40K | |
| Security Deposits for Lease and Utilities | $8K | $21K | |
| Initial Inventorynot refundable | $192K | $399K | |
| Insurancenot refundable | $4K | $9K | |
| Training Expensesnot refundable | $2K | $4K | |
| Grand Opening Advertising/Marketingnot refundable | $10K | $25K | |
| Professional Fees, Business Licenses and Permitsnot refundable | $1K | $10K | |
| Additional Funds (3-month period)not refundable | $95K | $110K | |
| Total initial investment | $376K | $798K |
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
- $376K – $798K
- Top 40% of category vs category
- Liquid capital req'd
- $95K – $110K
- Middle of category vs category
- Franchise fee
- $25K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- Currently $175 per week (Marketing Fee); may be increased…
- Total fee load
- 0.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $1K |
| Training fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $2K |
| Inventory (initial) | $192K – $399K |
| Total fee load | 0.0% of rev |
A 0.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 24% below the retail norm.
Source: FDD 2026 · Item 19
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
$44K
6.0% margin
Unlevered ROIC
6%
EBITDA / total invested capital
Payback
15.7 yrs
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one BUDDY’S HOME FURNISHINGS unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
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%.
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
- Avg gross sales
- $731K
- Per unit, per year
- Median gross sales
- $670K
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 sales
- Sample size
- 188
- vs category median 47 · large
- Range (low → high)
- $210K→$2.0M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail brands
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 $731K/year in gross sales. Revenue-to-investment ratio: 1.2x.
Fee burden
Total ongoing fee load of 0.0% — below the Retail average of 8.9%.
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
System contracting at -37.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Retail averages
How Buddy’s Home Furnishings Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 223
- Opened
- 3
- Last reporting year
- Closed
- 107
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 71.2%
- Company-owned
- 32
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Net growth (3-yr)
- -37.0%
- Net unit change over 3 years
- 3-yr CAGR
- -37.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 25
- Closed (3yr)
- 128
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 2.1%
- Franchisor-initiated terminations
- Ceased ops
- 0.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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.
- Total loans
- 12
- Loan volume
- $7.6M
- Median loan
- $503K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
- Typical loan rate
- 8.0%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 5322
- Jobs supported
- 141
- 1.9 per loan
- Lender concentration
- 17%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Top lenders financing Buddy’s Home Furnishings franchisees
Showing 3 of 9 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.
With a 0.0% charge-off rate across 12 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Buddy's Home Furnishings presents HIGH RISK due to a rapidly shrinking franchise network (-35% YoY), multiple litigated disputes with franchisees, thin profit margins, and lack of transparent financial disclosures—suggesting systemic franchisor-franchisee friction and deteriorating unit economics.
Litigation (Item 3)
Predecessor BFL involved in: (1) consolidated arbitration with MMS Group and Joseph Gazzo III (settled May 2024 with BFL paying $1,625,000); (2) action against Buddy Mac Holdings for post-termination non-compete violation (settled Feb 2026 pending bankruptcy court approval); (3) FTC consent order (May 2020) prohibiting reciprocal purchase agreements among rent-to-own operators. No current franchisor (BHF Franchising) litigation disclosed.
Largest disclosed settlement: $1,625,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Predecessor entity BFL's former indirect parent Franchise Group Inc. (FRG) and affiliates including BFL filed Chapter 11 bankruptcy in Delaware on November 3, 2024 (Case No. 24-12480). Emerged from bankruptcy June 6, 2025 under confirmed plan.
Audited financials (Item 21)
Yes · Rivero, Gordimer & Company, P.A.
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 40 / 100 verdict
- 01MEDSystem contracting severely: -35.3% unit decline YoY (223 units) signals franchisee exits and loss of confidence
- 02HIGHMultiple material litigation matters including $1.6M settled disputes, FTC Final Order regarding reciprocal purchase agreements, and ongoing Buddy Mac Holdings settlement—pattern of franchisor-franchisee conflicts
- 03MINORThin unit economics: $103,024 avg net income on $731,276 revenue (14.1% net margin) means franchisees earn only ~$8,585/month after 6% royalty and before owner labor/debt service on $375k-$798k investment
- 04MINORHigh initial investment ($375k-$798k) paired with collapsing unit count creates survivor bias risk—remaining franchisees may not be representative
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 0.0% 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 |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 4,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Orlando, Florida |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 4 |
View Item 3 litigation summary
Predecessor BFL involved in: (1) consolidated arbitration with MMS Group and Joseph Gazzo III (settled May 2024 with BFL paying $1,625,000); (2) action against Buddy Mac Holdings for post-termination non-compete violation (settled Feb 2026 pending bankruptcy court approval); (3) FTC consent order (May 2020) prohibiting reciprocal purchase agreements among rent-to-own operators. No current franchisor (BHF Franchising) litigation disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 60 hrs
- Training location
- Orlando, Florida (corporate office); may be conducted virtually
- Ongoing training
- Required
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Proprietary Buddy's point-of-sale software (via Software License Agreement, Rider 1 to Technology Agreement)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Proprietary Buddy's point-of-sale software (via Software License Agreement, Rider 1 to Technology Agreement)
Item 20 · call current owners
Franchisee Contacts
202 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BUDDY’S HOME FURNISHINGS · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BUDDY’S HOME FURNISHINGS franchise?
The total investment to open a BUDDY’S HOME FURNISHINGS franchise ranges from $376K – $798K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BUDDY’S HOME FURNISHINGS franchise owners earn?
According to Item 19 of the BUDDY’S HOME FURNISHINGS FDD, the average gross sales per unit is $731K. The median is $670K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the BUDDY’S HOME FURNISHINGS 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 BUDDY’S HOME FURNISHINGS FDD and qualifies whose outlets they describe.
What is BUDDY’S HOME FURNISHINGS's franchise failure rate?
Based on SBA 7(a) loan data, BUDDY’S HOME FURNISHINGS has a charge-off rate of 0.0% across 12 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many BUDDY’S HOME FURNISHINGS franchise locations are there?
As of their most recent FDD filing, BUDDY’S HOME FURNISHINGS has 223 total units in the United States, including 191 franchised units and 32 company-owned units. 3 new units were opened in the latest reporting year.
Is BUDDY’S HOME FURNISHINGS a good franchise to buy?
FranchiseVerdict rates BUDDY’S HOME FURNISHINGS as a C-grade franchise with a verdict score of 40 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent BUDDY’S HOME FURNISHINGS, you can request corrections or provide updated information.
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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.