Buddy’s Home FurnishingsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A BUDDY’S HOME FURNISHINGS franchise requires a total initial investment of $376K – $798K, including a $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]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $376K – $798K
- 35th pct Retail
- Avg gross sales
- $731K
- 8th pct Retail
- Royalty
- 6.0%
- 17th pct Retail
- Units
- 223
- 33rd pct Retail
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail 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
Only 0.0% of 12 SBA loans charged off, well below the 16% franchise average.
Started franchising in 2026. Newer systems carry more uncertainty but may offer better territories.
The system contracted 35% year-over-year. Investigate why units are closing.
18% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $376K – $798K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $731K/year (median $670K), with an estimated 18% cash-on-cash return (based on P&L Bottom Line).
- Verdict C (Average) with a risk score of 68/100. SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BHF Franchising, LLC
- Parent company
- BHF Operating Company, LLC
- Incorporated in
- DE
- HQ
- 8529 Southpark Circle, Suite 410, Orlando, Florida 32819
- Auditor
- Rivero, Gordimer & Company, P.A.
- Audited financials
Overview
About
Buddy's Home Furnishings franchisees operate furniture retail locations offering in-home financing and sales to customers. Day-to-day activities include managing showroom inventory, executing in-home consultations, processing customer financing applications (often the franchisor's reciprocal purchase program), managing staff, and handling collections—with significant dependence on the franchisor's financing and vendor relationships.
- CEO
- Michael Bennett
- Headquarters
- FL
- Founded
- 2026
- FDD year
- 2026
- States available
- 17
FDD Item 7 · 2026 filing · 13 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.
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
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $376K – $798K
- Better than avg vs category
- Liquid capital req'd
- $95K – $110K
- Better than avg vs category
- Franchise fee
- $25K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- $175
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 5.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $1K |
| Training fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $2K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $731K
- Per unit, per year
- Median gross sales
- $670K
- Avg p&l bottom line
- $103K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 17.6%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 188 units
- vs category median 49 · large
- Range (low → high)
- $210K→$2.0M
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
vs Retail averages
How Buddy’s Home Furnishings Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 223
- Opened
- 3
- Last reporting year
- Closed
- 107
- Turnover rate
- 48.0%
- Company-owned
- 32
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Net growth (yr3)
- -35.3%
- Net unit change last year
- 3-yr CAGR
- -37.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 3
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 2.1%
- Franchisor-initiated terminations
- Ceased ops
- 0.9%
- Units that stopped operating
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
3 case reference(s): 0 pending, 3 settled.
Largest disclosed settlement: $2
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Court for the District of Delaware. On November 3, 2024, BFL’s (our predecessor’s) former indirect parent company, FRG, (and certain of FRG’s direct and indirect subsidiaries) (together with FRG, collectively, the “Debtors”), including BFL, filed voluntary petitions (the “Chapter 11 Cases
Audited financials (Item 21)
Yes · Rivero, Gordimer & Company, P.A.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 68 / 100 rating
- 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
- 04HIGHNo Item 19 financial performance data (Going Concern = False) limits verification of franchise system viability claims
- 05MINORHigh 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory sizeℹ | 7,000 households |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 3 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 3 settled.
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 60 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Not offered
- Item 10
- POS system
- VersiRent
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: VersiRent
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 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 36 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 risk score of 68 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.