17 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
The total initial investment to open a AR Homes franchise ranges from $535K to $2.2M (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for AR Homes is $65K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the AR Homes 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
AR Homes requires prospective franchisees to have a minimum net worth of $100K and $535K in liquid capital (2025 FDD). A personal guarantee is also required.
View full investment analysisYes, a AR Homes franchise requires a physical location (2025 FDD). Franchisees will need to lease or purchase commercial real estate, which is a significant component of the total investment.
View full investment analysisAR Homes charges a royalty fee of 4.3% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a AR Homes franchise is approximately 4.5% of gross sales (2025 FDD). This includes the royalty fee, a 0.3% marketing/advertising fund contribution, a $1000/month technology fee, and other recurring charges.
View full fees analysisAR Homes has been involved in 2 litigation cases over the past 3 years (2025 FDD). There are currently 1 pending cases. There are no class action lawsuits pending.
View full litigation analysisNo, the AR Homes franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisAR Homes offers protected territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.
View full territory analysisAR Homes currently operates 42 locations (2025 FDD) (42 franchised, 0 company-owned). The system grew by 0.0% over the past year. The 3-year compound annual growth rate is -3.0%.
View full growth analysisThe 1-year franchisee turnover rate for AR Homes is 2.4% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisAccording to the AR Homes FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $10.4M (average: $14.7M).
View full financials analysisThe initial franchise agreement term for AR Homes is 10 years (2025 FDD). Franchisees can renew 1 time for 10-year periods. The total potential term is 20 years.
View full contract analysisAR Homes's post-termination non-compete clause lasts 3 years after termination or expiration (2025 FDD).
View full legal analysisNo, AR Homes's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation. The agreement includes a jury trial waiver.
View full legal analysisAR Homes provides 106 hours of initial training (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a as-needed basis.
View full support analysisYes, AR Homes provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
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