Bottom line
- Total investment $151K – $348K including a $50K franchise fee.
- Average unit revenue of $5.4M/year (median $4.8M).
- Rated STRONG with a risk score of 47/100.
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 G.J. Gardner Homes unit return on the cash you put in?
Unlevered ROIC · per unit
252%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 G.J. Gardner Homes units return on equity?
Equity IRR · 5-yr
26.5%
3.24× MOIC
Year-1 DSCR
3.10×
EBITDA ÷ debt service
Equity required
$14.0M
on $27.1M purchase
Total debt
$13.1M
SBA $5.0M + senior + seller note
Overview
About
G.J. Gardner Homes franchisees operate as residential home builders/developers in protected territories, managing land acquisition, construction project coordination, sales, and customer relationships. Franchisees generate revenue through home sales while paying royalties based on gross sales volume.
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 12 · 6 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
6
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-growth but opaque home building franchise with undisclosed profitability, aggressive expansion trajectory, and minimal system size creating validation and sustainability risks.
Score breakdown · what drove the 47 / 100 rating
- 01MEDNet income not disclosed in Item 19 — impossible to validate actual profitability claims against $5.4M average revenue
- 02MINORRapid unit growth of 41.2% YoY suggests either aggressive expansion or high failure rate being masked; sustainability unclear
- 03MINORHigh royalty floor of $3,500/month ($42,000 annually) creates cash flow burden regardless of sales performance
- 04MINORInitial investment range ($151K–$348K) is wide, indicating inconsistent franchise setup costs or territory-dependent pricing
- 05MEDOnly 24 units system-wide is extremely small; limited peer data for franchisee validation and franchisor financial stability concerns
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
8 numbers
One-time purchase · CSV download · Validation questions included
FDD download
G.J. Gardner Homes · FDD (2024) PDF