NextHome Franchise Cost, Revenue & Review 2026
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. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $17K – $222K
- 5th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 512
- 82nd pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate avg · 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.
- RETURNSFY 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.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHSystem growing at 43.4% CAGR over 3 years with 512 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- NextHome, Inc.
- Parent company
- null
- 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
- $10.1M
- vs $8.8M 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 44% 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one NextHome unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
61%
Above the 30–60% band. Verify revenue is per-unit average
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
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.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 43.4% CAGR over 3 years across 512 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 averages
How NextHome Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 512
- Opened
- 42
- Last reporting year
- Closed
- 30
- Turnover rate
- 3.9%
- 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
3-year detail · Item 20
- Opened (3yr)
- 95
- Closed (3yr)
- 9
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 10
- Transfers (3yr)
- 10
- Reacquired (3yr)
- 0
- Franchisor bought back
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.
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
- N/A
- limited sample (1 loan) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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.
Litigation (Item 3)
One case: Realty World, Inc. v. NextHome, Inc. (N.D. Cal. Case No. 4:16-cv-5761). Settled February 2018 with mutual release. NextHome was both defendant and counter-plaintiff.
Largest disclosed settlement: $1,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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
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 | none |
| 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 | 1 |
View Item 3 litigation summary
One case: Realty World, Inc. v. NextHome, Inc. (N.D. Cal. Case No. 4:16-cv-5761). Settled February 2018 with mutual release. NextHome was both defendant and counter-plaintiff.
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
FDD download
NextHome · FDD (2026) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 512 total units in the United States, including 512 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), 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.
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.