Bottom line
- Total investment $376K – $798K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $731K/year (median $670K). Estimated payback in 5.7 years.
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 21 loans (below the industry average).
- System contracting at -37.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 BUDDY’S HOME FURNISHINGS unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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
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.
Score breakdown · what drove the 52 / 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
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
BUDDY’S HOME FURNISHINGS · FDD (2026) PDF