Honest Abe RoofingFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Honest Abe Roofing franchise requires a total initial investment of $213K – $582K, including a $60K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.5M[2]. Verdict grade: C. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $213K – $582K
- 71st pct Home Services
- Avg gross sales
- $1.5M
- 41st pct Home Services
- Royalty
- 5.0%
- 5th pct Home Services
- Units
- 19
- 26th pct Home Services
- SBA default
- 28.6%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services 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
Each dollar invested generates 3.9x in gross revenue, well above the typical 1.5-2.5x range.
The system contracted 13% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $213K – $582K including a $60K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.5M/year (median $820K).
- Verdict C (Average) with a risk score of 67/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Honest Abe Roofing Franchise, Inc.
- Incorporated in
- IN
- HQ
- 1070 Windsor Road, Terre Haute, Indiana 47802
- Auditor
- Ryan Perkins CPA Group, LLC
- Audited financials
- Franchisor revenue
- $4.6M
- 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
Franchisees operate residential and commercial roofing service businesses, managing crews, scheduling jobs, handling customer acquisition, and overseeing installation and repair work. Daily operations include job estimation, crew coordination, material procurement, and customer relationship management within their protected territory.
- CEO
- Kevin Newton
- Headquarters
- IN
- Founded
- 2017
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $36K | $76K |
| Equipment, build-out, other | $117K | $447K |
| Total initial investment | $213K | $582K |
Source: Honest Abe Roofing 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$186K
12.0% margin
Unlevered ROIC
41%
EBITDA / total invested capital
Payback
29 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $213K – $582K
- Below avg, review vs category
- Liquid capital req'd
- $36K – $76K
- Near category avg vs category
- Franchise fee
- $60K – $165K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Sales · 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 |
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $820K
- Item 19 type
- gross_sales
- Sample size
- 5 units
- vs category median 25 · small
- Range (low → high)
- $370K→$3.7M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 349 Home Services brands
vs Home Services averages
How Honest Abe Roofing Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 19
- Opened
- 7
- Last reporting year
- Closed
- 8
- Turnover rate
- 42.1%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 74%
- vs corporate-owned
- Net growth (yr3)
- -13.3%
- Net unit change last year
- 3-yr CAGR
- -18.8%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 15.4%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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.
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
- 28.6%
- 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)
- 50.0%
- 5-yr charge-off
- 33.3%
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Honest Abe Roofing's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
1 case reference(s): 2 pending, 0 settled.
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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 67 / 100 rating
- 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
- 03MEDNet income not disclosed in Item 19 prevents accurate ROI analysis on $212k-$582k investment despite $1.5M average revenue claim
- 04MINORHigh initial investment ($59.5k franchise fee + $212k-$582k total) with 5% royalty creates thin margins if average net income doesn't support breakeven within 2-3 years
- 05MINOR7-year term locks franchisee into relationship amid declining unit performance without clear growth trajectory
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 | 7 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 2 |
| Territory type | Designated Area based on Sets of zip codes |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Indiana |
| Litigation count | 1 |
View Item 3 litigation summary
1 case reference(s): 2 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 95 hrs
- On-the-job training
- 72 hrs
- Franchisor financing
- Offered
- Item 10
- POS system
- AbeConnect
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AbeConnect
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Honest Abe Roofing · FDD (2025) PDF
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 $213K – $582K, 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 $1.5M. The median is $820K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 19 total units in the United States, including 3 franchised units and 5 company-owned units. 7 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 risk score of 67 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.