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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
3.5-4.25% royalty (greater of percentage of ASP or minimum annual royalty) + 0.25% brand fund + $100/mo technology fee
Franchise Stats
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
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
SBA Loan History
Historical SBA 7(a) loan data for AR HOMES franchisees (2022 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a AR HOMES franchise?
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.
How much revenue does a AR HOMES franchise make?
According to the 2025 FDD, the average gross revenue for a AR HOMES franchise is $14,747,541. The median revenue is $10,358,953.
How much profit can you make with a AR HOMES franchise?
Based on the financial performance data in the FDD, estimated profit for a AR HOMES franchise ranges from $1,228,495 to $2,736,090 per year. Actual results vary based on location, management, and market conditions.
How many AR HOMES franchise locations are there?
As of the 2025 FDD, AR HOMES has 42 franchise locations. The company has been franchising since 1991.
Can you get an SBA loan for a AR HOMES franchise?
Yes, SBA loans are available for AR HOMES franchises. Historical data shows 4 SBA 7(a) loans have been approved for AR HOMES franchisees, with an average loan amount of $862,500. The historical default rate is 0.0%.
Is AR HOMES a good franchise to buy?
AR HOMES shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in AR HOMES?
Talk to a franchise advisor to get personalized guidance and learn if AR HOMES is the right fit for you.
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