Bottom line
- Total investment $17K – $222K including a $10K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 69/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 NextHome unit return on the cash you put in?
Unlevered ROIC · per unit
61%
Above typical band (30–60%)
Overview
About
NextHome franchisees operate real estate brokerage offices, recruiting and managing agents who buy/sell residential properties. Franchisees generate revenue through agent commissions and earn royalties either via flat monthly fees ($200 per non-team member) or transaction-based payments ($475 per closing). Day-to-day operations include agent recruitment, training, compliance management, and market development.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 69 / 100 rating
- 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
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
95 numbers
One-time purchase · CSV download · Validation questions included
FDD download
NextHome · FDD (2026) PDF