Quick Verdict · who it fits
Red Barn Homebuyers fits first-time franchise buyers looking for a mid-scale real estate concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$56K - $258K
Franchise fee (Item 5)
$35K
Royalty (Item 6)
0.25–3% + 10% ad
System size (Item 20)
125 +54
Agreement term
5 yrs
Years in business
5+ yrs
Company-owned units
11
Item 3 litigation
None disclosed
Model Red Barn Homebuyers's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
✓Financing available•No exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed✓No Item 3 litigation
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 0.25–3% + ad fund 10% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (0.25–3%)
—
Ad fund (10%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
90
Total units open
32 franchised units
Units opened last year
2 franchised units ceased operations; 1 reacquired by franchisor
Units closed last year
35 total units
Net unit growth
32 franchised net growth
What our analysis flagged across the 2026 filing.
5
Risks to review
3
Strengths identified
4
Questions to ask
How Red Barn Homebuyers ranks against 80 Real Estate peers we've analyzed.
Initial investment
53rd pct · of 80 peers
Franchise fee
55th pct · of 80 peers
System size
60th pct · of 80 peers
Real Estate industry averages
Avg investment
$145K - $361K
Avg franchise fee
$32K
Avg system size
276
Franchises analyzed
80
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Red Barn Homebuyers | None | $35K | $56K - $258K | 0.25–3% | 125 |
| Howard Hanna Real Estate AssociatesSimilar price | Disclosed | $25K | $45K - $259K | 2–6% | 40 |
| Re MaxBiggest system | None | $35K | $50K - $337K | — | 2,994 |
| ItripTop-rated in category | Disclosed | $10K | $119K - $153K | 4–6.1% | 105 |
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Free explainers to go deeper before you sign.
Red Barn Homebuyers requires a $34,500 initial franchise fee and a total initial investment range of $56,465–$257,820, per the most recent FDD on file.
Red Barn Homebuyers franchises are sold by Red Barn Homebuyers, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.
No. Red Barn Homebuyers does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.
Franchisees pay a royalty of 0.25%-3.00% and an advertising fund contribution of 10% of Acquisition Royalty Fee on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Red Barn Homebuyers has 125 total locations, with 54 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
No. Red Barn Homebuyers does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
Per the FDD, Red Barn Homebuyers discloses an initial agreement term of 5 years. Review Items 10 and 17 for the full renewal and termination provisions.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt