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AR HOMES
AR Franchising, Inc. offers franchises for operating residential homebuilding businesses that construct and market single-family and multi-family homes using proprietary plans, marks, copyrights, software bundle, and operational system. Franchisees customize plans, maintain a model home open to the public, and sell residential homes and lots in designated non-exclusive territories. The target market primarily consists of move-up home buyers and consumers seeking custom residential products.
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Franchise Costs
3.5-4.25% royalty (greater of percentage of ASP or minimum annual royalty) + 0.25% brand fund + $100/mo technology fee
Financial Performance
Item 19 Financial Performance
Data Based On: 29 of the 42 existing, active franchised AR Homes® Building Companies that closed a home in 2024 and have reported their full year financial results to us through ARIS.
* Best guess profit range is estimated using the average Adjusted Net Income ($1,228,495) as the low end and the average Gross Profit ($2,736,090) as the high end, as these are the explicit profit figures provided in the table. No segmented data was available to calculate quartile revenues.
Extracted Item 19 Section
Avg. Revenue: $14,747,541
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Unlock financial performance dataAR HOMES Franchise Analysis
In the bespoke world of residential construction, AR HOMES tempts entrepreneurs with turnkey systems for crafting dream homes tailored to move-up buyers. Item 19 lays bare revenue realities from existing operations, while a modest SBA loan footprint hints at financing paths not widely chased. But facing zero net growth amid terminations, does this established brand offer the scalable empire builders crave?
Delve into Item 7: expect $535,000 to $2,190,000 initial investment, kicked off by a $65,000 franchise fee, covering model homes, proprietary plans, software, and territory setup. Ongoing fees bite at 3.5-4.25% royalty (the greater of ASP percentage or minimum annual), plus 0.25% brand fund and $100 monthly tech charge. Item 19 shines brightly here—average gross revenue hits $14,747,541, median $10,358,953, with estimated profits ranging $1,228,495 to $2,736,090, signaling high-volume potential for operators who nail sales in non-exclusive territories.
System maturity shows 42 locations steady from 2023-2024 (0% growth), projecting 8 new units amid 3 terminations, suggesting stability over expansion fireworks. Four SBA loans averaging $862,500 underscore viable debt options despite the lofty entry. Buyers eyeing seven-figure returns should probe territory demand, local housing cycles, and recent franchisee experiences via Item 20 contacts to gauge if AR HOMES' custom edge justifies the multimillion commitment.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for AR HOMES franchisees (2022 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
4 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
44 franchisee contacts on file from official FDD filings.
44 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a AR HOMES franchise ranges from $535,000 to $2,190,000. This includes a franchise fee of $65,000. Ongoing royalty fees are 3.5% of gross sales.
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