Honest Abe Roofing Franchise Cost, Revenue & Review 2026
- Investment
- $198K – $278K
- Disclosed sales
- $2.1M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (7)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Honest Abe Roofing is a roofing franchise handling residential roof replacement, repair, and inspection. Franchisees run local operations, managing sales, crews, estimates, and project delivery within a territory.
FranchiseVerdict summary · 2026
A Honest Abe Roofing franchise requires a total initial investment of $198K – $278K, including a $60K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.1M[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
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 scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $198K – $278K
- 76th pct Home Services
- Avg gross sales
- $2.1M
- 19th pct Home Services
- Royalty
- 5.0%
- 8th pct Home Services
- Units
- 16
- 25th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services 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 $198K – $278K including a $60K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.1M/year (median $2.6M).
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- GROWTHNegative: net -5 franchised outlets in the latest year (2 opened, 7 closed); 2 signed but not yet open (Item 20).
- FLAG7 units terminated last reporting year (43.8% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Honest Abe Roofing Franchise, Inc.
- Parent company
- Integritas Family of Companies, Inc.
- FDD Item 1, page 10 of the 2026 FDD
- CEO title
- Founder and President
- Kevin Newton
- Incorporated in
- Indiana
- HQ
- 1024 S. 6th Street, Terre Haute, Indiana 47802
- Auditor
- Ryan Perkins CPA Group, LLC
- Audited financials
- Franchisor revenue
- $2.7M
- vs $2.6M prior year
Affiliated brands
- Honest Abe Roofing of Indianapolis
- Forever Roof
- Abraham L
- Honest Abe Roofing of Dayton
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Kevin Newton
- Headquarters
- Indiana
- Founded
- 2017
- FDD year
- 2026
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 41% above the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $36K | $76K |
| Equipment, build-out, other | $102K | $142K |
| Total initial investment | $198K | $278K |
Source: Honest Abe Roofing 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $198K – $278K
- Bottom third — review vs category
- Liquid capital req'd
- $36K – $76K
- Bottom third — review vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $215 |
| Transfer fee | $3K |
| Renewal fee | $10K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales run 253% above the home services 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 Honest Abe Roofing 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 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
$294K
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 Honest Abe Roofing 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 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 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
- $2.1M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $2.6M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical gross sales per territory
- Sample size
- 5 outlets
- vs category median 32 · small
- Range (low → high)
- $365K→$4.1MCited, not corroborated — printed on page 52 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 319 Home Services brands
Revenue is 8.7x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
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 $2.1M/year in gross sales. Median ($2.6M) exceeds the average — distribution is bottom-heavy but most units perform well. Revenue-to-investment ratio: 8.7x.
Fee burden
Total ongoing fee load of 7.0% (near the Home Services median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 5 outlets — treat as directional only.
Operator retention
System contracting at -46.7% 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 Home Services medians
How Honest Abe Roofing Compares
Category median of published Home Services 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
- 16
- Opened
- 2
- Last reporting year
- Closed
- 7
- Terminated
- 7
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 43.8%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 50%
- vs corporate-owned
- Net growth (3-yr)
- -46.7%
- Net unit change over 3 years
- 3-yr CAGR
- -46.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 7
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.13 per open outlet · Item 20 Table 5
- Projected new
- 15
- Franchisor's next-year forecast
- Termination rate
- 15.4%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 5 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.
5
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $1.2M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- Under 10 loans (7)
- Insufficient SBA coverage: 7 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (7)
- 5-yr charge-off
- Under 10 loans (7)
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Honest Abe Roofing presents caution-level risk due to shrinking franchisee base, undisclosed profitability metrics, pending litigation, and high capital requirements relative to unproven unit economics.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
Franchisor filed suit against a former franchisee (Boilermaker Roofing, Inc. et al.) in Vigo County, Indiana, alleging breach of franchise agreement including failure to pay amounts owed and post-term violations; case pending as of Issuance Date.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ryan Perkins CPA Group, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: 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
- 01MINORUnit count declining 13.3% YoY (19 units) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02HIGHActive litigation by franchisor against franchisee for breach and abandonment suggests operational or support issues and potential franchisor-franchisee conflict
- 03MINOR7-year term locks franchisee into relationship amid declining unit performance without clear growth trajectory
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% 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 | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 2 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 17 |
| Curable defaultsℹ | 15 |
| Mandatory arbitration | Yes |
| Arbitration location | county of franchisor's principal place of business (Terre Haute, Indiana) |
| Jury trial waiver | Yes |
| Governing law | Indiana |
| Litigation count | 1 |
View Item 3 litigation summary
Franchisor filed suit against a former franchisee (Boilermaker Roofing, Inc. et al.) in Vigo County, Indiana, alleging breach of franchise agreement including failure to pay amounts owed and post-term violations; case pending as of Issuance Date.
Items 10, 11
Training & Operations
- Classroom training
- 95 hrs
- On-the-job training
- 72 hrs
- Training location
- Online; Terre Haute, Indiana; and Your Location
- Ongoing training
- Required
- Field support
- 72 hrs/yr
- On-site visits per year
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- AbeConnect CRM
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AbeConnect CRM
Item 20 · call current owners
Franchisee Contacts
28 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 Honest Abe Roofing franchise?
The total investment to open a Honest Abe Roofing franchise ranges from $198K – $278K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Honest Abe Roofing franchise owners earn?
According to Item 19 of the Honest Abe Roofing FDD, the average gross sales per unit is $2.1M. The median is $2.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Honest Abe Roofing?
Honest Abe Roofing is franchised by Honest Abe Roofing Franchise, Inc.. Its parent company is Integritas Family of Companies, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Honest Abe Roofing 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 Honest Abe Roofing FDD and qualifies whose outlets they describe.
What is Honest Abe Roofing's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Honest Abe Roofing (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Honest Abe Roofing franchise locations are there?
As of their most recent FDD filing, Honest Abe Roofing has 16 total units in the United States, including 8 franchised units and 8 company-owned units. 2 new units were opened in the latest reporting year.
Is Honest Abe Roofing a good franchise to buy?
FranchiseVerdict rates Honest Abe Roofing 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.