NextHomeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A NextHome franchise requires a total initial investment of $17K – $222K, including a $10K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $17K – $222K
- 3rd pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- N/A
- Units
- 587
- 71st pct Real Estate
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate 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
Franchised units fell from 602 to 587 over 3 years. Investigate why operators are leaving.
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.
- Verdict A (Top Quintile) with a risk score of 37/100.
- 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
- Legal entity
- NEXTHOME, INC.
- Parent company
- null
- Incorporated in
- DE
- HQ
- 4900 Hopyard Road, West Lobby, Suite 100, Pleasanton, CA 94588
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $12.5M
- vs $12.6M prior year
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.
- CEO
- James Dwiggins
- Headquarters
- CA
- Founded
- 2011
- FDD year
- 2026
- States available
- 46
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $5K | $100K |
| Equipment, build-out, other | $2K | $112K |
| 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
- Better than avg vs category
- Liquid capital req'd
- $5K – $100K
- Better than avg vs category
- Franchise fee
- $5K – $10K
- Better than avg vs category
- Royalty
- $200 per month for each Non-Team Member or $475 upon the …
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $80 |
| Transfer fee | $5K |
| Renewal fee | $5K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Real Estate averages
How NextHome Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 587
- Opened
- 42
- Last reporting year
- Closed
- 30
- Turnover rate
- 5.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -3.5%
- Net unit change last year
- 3-yr CAGR
- -2.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 9
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
- 0.0%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into NextHome's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 37 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 3 |
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 0 hrs
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 $10K. 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 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 602 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 risk score of 37 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.