NextHome Franchise Cost, Revenue & Review 2026
- Investment
- $17K – $222K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
NextHome is a residential real-estate brokerage franchise built around a consumer-friendly, tech-forward brand. Franchisees run local offices recruiting and supporting agents, earning from commissions on home sales.
FranchiseVerdict summary · 2026
A NextHome franchise requires a total initial investment of $17K – $222K, including a $5K – $10K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), 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 scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $17K – $222K
- 5th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- Set by a formula
- Units
- 587
- 83rd pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate 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 $17K – $222K including a $5K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHNegative: net -21 franchised outlets in the latest year (42 opened, 63 closed); 7 signed but not yet open (Item 20).
- GROWTHSystem growing at 43.4% CAGR over 3 years with 587 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- NextHome, Inc.
- Predecessor
- Realty World - Northern California, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Director
- James M. Dwiggins
- Incorporated in
- DE
- HQ
- 4309 Hacienda Drive, Suite 110, Pleasanton, CA 94588
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $12.6M
- vs $12.5M prior year
Overview
About
- CEO
- James M. Dwiggins
- Headquarters
- CA
- Founded
- 2014
- FDD year
- 2026
- States available
- 46
Can you afford it, and what does the money buy?
Entry cost runs 10% below the typical real estate franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $5K | $5K |
| Working capital (3–6 mo) | $5K | $100K |
| Equipment, build-out, other | $7K | $117K |
| Total initial investment | $17K | $222K |
Source: NextHome 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
- $17K – $222K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $100K
- Top 40% of category vs category
- Franchise fee
- $5K – $10K
- Top 40% of category vs category
- Royalty
- Per Licensed Associate: (a) 6% of Adjusted Gross Income (…
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $80 |
| Transfer fee | $5K |
| Renewal fee | $5K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
NextHome makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one NextHome 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 annual revenue, royalty rate, ad fund rate, 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.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 43.4% CAGR over 3 years across 587 units — operators are staying and new ones are joining.
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 Real Estate medians
How NextHome Compares
Category median of published Real Estate 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
- 587
- Opened
- 42
- Last reporting year
- Closed
- 63
- Terminated
- 9
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 24
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +43.4%
- Net unit change over 3 years
- 3-yr CAGR
- +43.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 9
- Not renewed
- 24
- Signed, not yet open
- 7
- 0.01 per open outlet · Item 20 Table 5
- Projected new
- 53
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 47 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.
Where the owners are · Item 20 owner list
533 current owners across 46 states; 53 former (terminated, transferred or not renewed) listed separately.
- FL 63
- CA 62
- TX 40
- NC 33
- VA 25
- MI 23
- WI 19
- NY 18
- NJ 17
- GA 13
- CO 12
- PA 12
- +34 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $350K
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, 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 (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- 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
NextHome presents high risk due to a contracting franchise system, ongoing antitrust litigation threatening its commission-based model, absence of financial transparency (no Item 19), and unprotected territories—making unit profitability and competitive viability uncertain.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY ended September 30, 2021. Total revenues comprise royalty fees, technology fee and advertising fund, conference sponsorships/tickets, service fees, initial franchise fees, franchise renewal/transfer fees, and other income. ASC 606 adopted in FY2020.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 76 / 100 verdict
- 01MINORDeclining unit count (-3.5% YoY; 587 units suggests contraction and potential system weakness)
- 02MEDMultiple ongoing and settled antitrust lawsuits targeting core business model (commission structure), indicating systemic legal/regulatory vulnerability
- 03MINORNo average revenue or net income disclosure (Item 19) prevents ROI assessment and suggests franchisor may be hiding unfavorable unit economics
- 04MINORUnprotected territory creates direct franchisee-to-franchisee competition within system
- 05MINORRoyalty structure heavily favors transaction-based model ($475/closing vs. $200/month flat), creating feast-or-famine cash flow for franchisees
- 06MINORLow franchise fee ($10,000) relative to startup costs ($16,750-$221,595) suggests significant ancillary costs are not transparent
- 07HIGHTrademark/domain litigation history (settled 2018) indicates past brand instability and IP management concerns
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail3 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Alejandro Lopez, individually and on behalf of similarly situated individuals v. NextHome, Inc., Realty Executives Intl. Svcs. LLC, and Shorewest Realtors, Inc.; subsequently consolidated with James Tuccori, Courtney Foregger, Kevin Cwynar, Dawid Zawislak, Michael D'Acquisot, and Alejandro Lopez v.
pendingThird-party plaintiff · filed 2024-11-19 · United States District Court for the Northern District of Illinois, Eastern Division · 24-cv-11735; consolidated into 1:24-cv-00150
“On November 19, 2024, Alejandro Lopez (“Lopez”) filed a class action lawsuit against us and 2 other real estate brokerages (collectively, the “Lopez Defendants”). Lopez – who is a home seller who also seeks to represent a class consisting of all persons in the United States who purchased residential real estate listed on certain Multiple Listing Services during the applicable limitations period”Page 14 of the 2026 FDD, Item 3
Outcome:“Plaintiffs and most of the defendants (including us) entered into a unified written Class Settlement Agreement on October 10, 2025, which was preliminarily approved by the court on October 15, 2025. The cases were formally consolidated on October 22, 2025.”
Concluded (2)
Don Gibson, Lauren Criss, John Meiners, Daniel Umpa, individually and on behalf of all others similarly situated v. National Association of Realtors, NextHome, Inc., et al.
settledThird-party plaintiff · filed 2024-04-25 · United States District Court for the Western District of Missouri · 4:23-cv-00788-SRB
“On April 25, 2024, Don Gibson, Lauren Criss, John Meiners and Daniel Umpa (collectively, the “Gibson Plaintiffs”) filed a class action lawsuit against NAR, us, and several other real estate brokerages, real estate brokerage owners and real estate brokerage franchisors (collectively, the “Gibson Defendants”).”Page 13 of the 2026 FDD, Item 3
Outcome:“On September 30, 2024, we and the Gibson Plaintiffs entered into a settlement agreement under which we denied the Gibson Plaintiffs’ allegations and agreed to: (i) pay a total of $600,000 into a settlement fund;”
Realty World, Inc. v. NextHome, Inc. et al.
settledThird-party plaintiff · filed 2016-10-06 · United States District Court for the Northern District of California · 4:16-cv-5761
“Realty World, Inc. v. NextHome, Inc. et al. (United States District Court for the Northern District of California, Case No. 4:16-cv-5761). RWNC became a master licensee of the Realty World brand in Northern California and portions of Nevada beginning in November 2001.”Page 11 of the 2026 FDD, Item 3
Outcome:“The Settlement Agreement also provided that, in exchange for a payment of $1,000 from RWI, we would assign our rights under the MLA and related franchise agreements to RWI effective February 1, 2020, assuming certain conditions were met.” (page 12)
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 1 year |
|---|---|
| Renewal term | 1 year |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| RoFR response window | 15 days |
| Transfer requires consent | Yes |
| Termination notice | 20 days |
| Mandatory arbitration | No |
| Arbitration location | California (metropolitan area of headquarters) |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 3 |
Items 10, 11
Training & Operations
- Classroom training
- 26 hrs
- On-the-job training
- 0 hrs
- Training location
- Online or franchisor headquarters in Pleasanton, California
- Ongoing training
- Optional
- Time to open
- 2 mo
- From signing to launch
- Site selection
- franchisee (subject to franchisor approval)
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
586 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 NextHome franchise?
The total investment to open a NextHome franchise ranges from $17K – $222K, with an initial franchise fee of $5K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do NextHome franchise owners earn?
NextHome makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns NextHome?
NextHome is franchised by NextHome, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the NextHome 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 NextHome FDD and qualifies whose outlets they describe.
What is NextHome's franchise failure rate?
SBA 7(a) loan charge-off data is not available for NextHome (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 NextHome franchise locations are there?
As of their most recent FDD filing, NextHome has 587 total units in the United States, including 587 franchised units and 0 company-owned units. 42 new units were opened in the latest reporting year.
Is NextHome a good franchise to buy?
FranchiseVerdict rates NextHome as a A-grade franchise with a verdict score of 76 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.
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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.