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FranchiseVerdict

How Much Does a Buddy’s Home Furnishings Franchise Cost?

Data from the 2026 Franchise Disclosure Document

Investment Summary

Total Investment

$376K – $798K

Franchise Fee

$40K

Royalty

6.0%

Ad Fund

$175

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Buddy’s Home Furnishings is $40K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Buddy’s Home Furnishings franchise requires a total investment of $376K – $798K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $95K to $110K.

Ongoing Costs

Beyond the initial investment, Buddy’s Home Furnishings franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Percentage of Gross Sales). The ad fund contribution is: $175. There is also a technology fee of $1K.

Net Worth & Liquid Capital Requirements

Buddy’s Home Furnishings requires working capital of $95K – $110K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to Buddy’s Home Furnishings's Item 19 financial performance representation:

$731KAvg. Gross Sales

Median gross sales: $670K

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View Buddy’s Home Furnishings?

SBA Loans Issued

21

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Buddy’s Home Furnishings has 21 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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