Bottom line
- Total investment $131K – $445K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $485K/year (median $239K).
- Rated MODERATE with a risk score of 55/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Joe Homebuyer unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Joe Homebuyer units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$775K
on $3.9M purchase
Total debt
$3.1M
SBA $1.9M + senior + seller note
Overview
About
Joe Homebuyer franchisees operate real estate services focused on helping homeowners sell properties, likely providing valuation, marketing, and transaction facilitation. Day-to-day activities involve lead generation, client consultations, property valuations, coordinating showings, and managing sales transactions in their local market.
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 · 36 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit growth, undisclosed profitability metrics, unprotected territory, and vague royalty structure present meaningful risk despite viable revenue levels and no litigation.
Score breakdown · what drove the 55 / 100 rating
- 01MEDNet income not disclosed in FDD — unable to validate actual profitability despite $484k average revenue claim
- 02MINORUnit count declining 1.6% YoY (64 units) — suggests market saturation, retention issues, or uncompetitive model
- 03MINORTerritory not protected — franchisees compete directly with other Joe Homebuyer franchisees and corporate, creating cannibalization risk
- 04MINORWide investment range ($131k-$445k) with no clarity on what drives 3.4x variance — suggests inconsistent startup costs or hidden expenses
- 05MINOR5-9% royalty on 'Net Proceeds' is vague terminology — unclear if calculated before/after operating expenses, creating audit risk
- 06MINOR7-year term is relatively short — insufficient runway to recoup franchise fee and build sustainable customer base
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
81 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Joe Homebuyer · FDD (2025) PDF