Bottom line
- Total investment $59K – $258K including a $35K franchise fee, 0.3% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- System growing at 561.5% CAGR over 3 years with 90 total units — strong expansion trajectory.
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 Red Barn Homebuyers unit return on the cash you put in?
Unlevered ROIC · per unit
53%
In Yale's "attractive" band (30–60%)
Overview
About
Red Barn Homebuyers franchisees operate in residential real estate through three revenue streams: acquiring distressed properties below market value, wholesaling deals to other investors, and listing residential properties for sale. Day-to-day work involves property sourcing, negotiations, market analysis, and client management across acquisition, wholesale, and traditional MLS-based listing operations.
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 · 31 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
Red Barn presents CAUTION-level risk due to absent financial disclosures, false going concern status, unprotected territory, and opaque royalty structures that obscure true earnings potential.
Score breakdown · what drove the 62 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate earnings claims or ROI expectations
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability or undisclosed operational challenges at franchisor level
- 03MINORUnprotected territory creates direct competition risk; franchisees in same area compete against each other and franchisor's own operations
- 04MEDComplex tiered royalty structure (0.25%-3% acquisition, 5%-10% wholesale, 10% listing commission) creates unpredictable income and payment opacity
- 05MINORRapid unit growth (59.3% YoY) may indicate aggressive recruitment over sustainable support; high churn risk typical in real estate franchises
- 06MEDHigh initial investment ($257,820 max) with no disclosed average revenue makes ROI assessment impossible
- 07MINORReal estate transaction-based model creates highly variable monthly income and feast-famine cash flow cycles
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
87 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Red Barn Homebuyers · FDD (2025) PDF