Red Barn Homebuyers Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Red Barn Homebuyers is a real-estate franchise focused on buying distressed homes, wholesaling deals to investors, and listing properties. Franchisees run a local investing-and-brokerage operation sourcing, negotiating, and reselling properties.
FranchiseVerdict summary · 2026
A Red Barn Homebuyers franchise requires a total initial investment of $59K – $258K, including a $35K franchise fee and an ongoing 3.0% royalty[2]. The 2025 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 2025 FDD issuance
Overview
- Investment
- $59K – $258K
- 39th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 3.0%
- 4th pct Real Estate
- Units
- 89
- 46th 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 $59K – $258K including a $35K franchise fee, 3.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict A (Strongest tier), verdict score 68/100 (higher is better).
- FLAG5 units terminated last reporting year (5.6% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Red Barn Homebuyers, LLC
- CEO title
- Chief Executive Officer
- Dr. Kevin D. Corsini
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Georgia
- HQ
- 105 Towne Lake Parkway, Woodstock, Georgia 30188
- Auditor
- REESE CPA LLC
- Audited financials
- Franchisor revenue
- $2.1M
- vs $2.0M prior year
Overview
About
- CEO
- Dr. Kevin D. Corsini
- Headquarters
- GA
- Founded
- 2021
- FDD year
- 2025
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 26% below the typical real estate franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Feesnot refundable | $35K | $35K | |
| Vehicle | $0 | $15K | |
| Technology Systems | $70 | $2K | |
| Technology Fee (pre-opening)not refundable | $760 | $1K | |
| Home Office Supplies | $100 | $300 | |
| Lead Generation Fees (pre-opening) | $3K | $5K | |
| Permits and Business License | $35 | $200 | |
| Bookkeeping Software & Services | $300 | $1K | |
| Professional Fees | $500 | $3K | |
| Insurance (3 months' premium) | $200 | $600 | |
| Property Acquisition Reserve | $5K | $165K | |
| Additional Funds (3 months) | $15K | $30K | |
| Total initial investment | $59K | $258K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $59K – $258K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $30K
- Middle of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 3.0%
- percentage · typical 6–8%
- Ad fund
- 10.0%
- typical 3–5%
- Total fee load
- 10.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 10.0% of gross sales |
| Technology fee | $260 |
| Transfer fee | $17K |
| Renewal fee | $1K |
| Total fee load | 10.3% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Red Barn Homebuyers 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 Red Barn Homebuyers unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
41%
Within the 30–60% "attractive franchise" band
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: 2025 FDD
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.3% (near the Real Estate average).
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 561.5% CAGR over 3 years across 89 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 Red Barn Homebuyers Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 89
- Opened
- 40
- Last reporting year
- Closed
- 8
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 32
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 7.8%
- Owners selling to other franchisees
- Continuity rate
- 91.5%
- Units that stayed open
- Termination rate
- 5.6%
- Franchisor-initiated terminations
- Ceased ops
- 1.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 26 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
26
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
No litigation, no bankruptcy, no going-concern; $2.03M revenue on 90 units (86 franchised) with explosive but volatile 561.5% net growth. No Item 19 disclosed and equity not reported, the single notable concern. Turnover 0%.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · REESE CPA LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 68 / 100 verdict
- 01MINORNo litigation/bankruptcy/going-concern
- 02MINORNo Item 19 disclosure; equity not reported
- 03MINORRapid but volatile growth 561.5%, turnover 0%
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Municipal boundaries |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 250,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Cherokee County, Georgia |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 63 hrs
- Training location
- Online / Remotely Conducted
- Ongoing training
- Required
- Field support
- 27 hrs/yr
- On-site visits per year
- Time to open
- 5 mo
- From signing to launch
- POS system
- Red Barn Central (RBC)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Red Barn Central (RBC)
Item 20 · call current owners
Franchisee Contacts
105 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Red Barn Homebuyers · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Red Barn Homebuyers franchise?
The total investment to open a Red Barn Homebuyers franchise ranges from $59K – $258K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Red Barn Homebuyers franchise owners earn?
Red Barn Homebuyers 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 Red Barn Homebuyers 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 Red Barn Homebuyers FDD and qualifies whose outlets they describe.
What is Red Barn Homebuyers's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Red Barn Homebuyers (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 Red Barn Homebuyers franchise locations are there?
As of their most recent FDD filing, Red Barn Homebuyers has 89 total units in the United States, including 86 franchised units and 3 company-owned units. 40 new units were opened in the latest reporting year.
Is Red Barn Homebuyers a good franchise to buy?
FranchiseVerdict rates Red Barn Homebuyers as a A-grade franchise with a verdict score of 68 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.