Buddy’s Home Furnishings Franchise Cost, Revenue & Review 2026
- Investment
- $376K – $798K
- Disclosed sales
- $731K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 12 loans
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 →
Limited operating history: franchising since 2026. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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 scored5 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $376K – $798K
- 39th pct Retail
- Avg gross sales
- $731K
- 8th pct Retail
- Royalty
- 6.0%
- 20th pct Retail
- Units
- 223
- 35th 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 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 $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).
- GROWTHNegative: net -104 franchised outlets in the latest year (3 opened, 107 closed) (Item 20).
- 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
- FDD Item 1, page 9 of the 2026 FDD
- 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 75% 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%
- 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 9% below the retail norm.
Source: FDD 2026 · 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 BUDDY’S HOME FURNISHINGS 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 ad fund rate, 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
$689K
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 BUDDY’S HOME FURNISHINGS 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 ad fund rate, 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 ad fund rate, 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: 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 outlets
- vs category median 46 · large
- Range (low → high)
- $210K→$2.0MNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- 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 median of 8.0%.
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 medians
How Buddy’s Home Furnishings Compares
Category median of published Retail 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 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
- 48.0%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 12
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
191 current owners across 17 states; 11 former (terminated, transferred or not renewed) listed separately.
- TX 49
- GA 26
- VA 18
- FL 17
- NC 15
- AL 14
- WA 12
- SC 11
- MS 6
- TN 6
- PA 5
- AZ 3
- +5 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 12 loans · 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: 50% went to startups / new businesses, 50% 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Buddy’s Home Furnishings from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 7.96%
- Lender concentration
- 16.7%
- Job velocity
- 1.9 per $100K
- Jobs supported
- 141
Top SBA lendersTop lender holds 17% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 2 | N/A | N/A | |
| 2 | 2 | N/A | N/A | |
| 3 | 2 | N/A | N/A | |
| 4 | 1 | N/A | N/A | |
| 5 | 1 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| ALAlabama | 2 | 0 | -- |
| TXTexas | 2 | 0 | 0.0% |
| VAVirginia | 2 | 0 | -- |
| WAWashington | 2 | 0 | -- |
| GAGeorgia | 1 | 0 | -- |
| ILIllinois | 1 | 0 | -- |
| INIndiana | 1 | 0 | -- |
| OKOklahoma | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
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)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 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.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor BHF Franchising, LLC was formed January 14, 2026; Item 21 includes only an audited opening balance sheet as of March 11, 2026, with no income statement, so no revenue or net income is available. Total assets of $10,688,000 are intangible (franchising agreements $4,929,000, trademarks/domains $4,509,000, goodwill $1,000,000) plus $250,000 cash; zero liabilities; member's equity $10,688,000.
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 territory |
| 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
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.
Who owns BUDDY’S HOME FURNISHINGS?
BUDDY’S HOME FURNISHINGS is franchised by BHF Franchising, LLC. Its parent company is BHF Operating Company, LLC. Source: FDD Item 1, 2026 filing.
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). 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.