Renovation SellsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Renovation Sells franchise requires a total initial investment of $79K – $101K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2024 FDD, average unit revenue was $161K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $79K – $101K
- 51st pct Real Estate
- Avg gross sales
- $161K
- 6th pct Real Estate
- Royalty
- 7.0%
- 38th pct Real Estate
- Units
- 43
- 28th 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
The system grew 29% year-over-year. Fast growth means demand, but can strain support.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $79K – $101K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $161K/year.
- Verdict A (Top Quintile) with a risk score of 19/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Renovation Sells Franchising, LLC
- Parent company
- Renovation Sells Holdings, LLC
- Incorporated in
- IL
- HQ
- 2370 N. Elston Avenue, Chicago, Illinois 60614
- Auditor
- REESE CPA LLC
- Audited financials
- Franchisor revenue
- $407K
- vs $1.7M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
Franchisees operate residential or commercial renovation/remodeling service businesses, likely managing project acquisition, contractor coordination, budgeting, and client relationships. Day-to-day activities include sales consultations, project estimation, crew supervision, quality control, and customer communication to deliver renovation projects on time and within budget.
- CEO
- Michael Valente
- Headquarters
- IL
- Founded
- 2020
- FDD year
- 2024
- States available
- 19
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $5K | $13K |
| Equipment, build-out, other | $24K | $38K |
| Total initial investment | $79K | $101K |
Source: Renovation Sells 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$24K
15.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $79K – $101K
- Near category avg vs category
- Liquid capital req'd
- $5K – $13K
- Better than avg vs category
- Franchise fee
- $50K – $120K
- Near category avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $150 |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $161K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate Owned Outlet
- Sample size
- 1 units
- vs category median 41 · small
- Range (low → high)
- $3K→$319K
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 0 / 5 · above
Compared against 121 Real Estate brands
vs Real Estate averages
How Renovation Sells Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 43
- Opened
- 13
- Last reporting year
- Closed
- 4
- Turnover rate
- 9.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +29.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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.
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 loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $987K
- Median loan
- $150K
- 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Renovation Sells's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-risk renovation services franchise with strong headline metrics but lack of franchisee-level financial transparency and aggressive growth trajectory warrant careful validation.
Audited financials (Item 21)
Yes · REESE CPA LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 19 / 100 rating
- 01MINORHigh unit growth rate (29% YoY) may indicate unsustainable expansion or survivor bias in reported financials
- 02MEDFranchise fee ($50,000) represents 63% of minimum total investment, leaving limited working capital
- 03MEDNo Item 19 financial performance representations disclosed — actual franchisee results unknown
- 04MINOR7% royalty on $2.34M average revenue equals $163,800 annually, material cost not reflected in net income claim
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip codes |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 41 hrs
- POS system
- QuickBooks online, Buildertrend, ProfitKeeper
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks online, Buildertrend, ProfitKeeper
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Renovation Sells · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Renovation Sells franchise?
The total investment to open a Renovation Sells franchise ranges from $79K – $101K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Renovation Sells franchise owners earn?
According to Item 19 of the Renovation Sells FDD, the average gross sales per unit is $161K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Renovation Sells's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Renovation Sells (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 Renovation Sells franchise locations are there?
As of their most recent FDD filing, Renovation Sells has 43 total units in the United States, including 8 franchised units and 1 company-owned units. 13 new units were opened in the latest reporting year.
Is Renovation Sells a good franchise to buy?
FranchiseVerdict rates Renovation Sells as a A-grade franchise with a risk score of 19 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.