Exploring franchise ownership with AR Homes® is an exciting opportunity to build a rewarding business backed by a trusted brand. One of the most common questions we hear from prospective franchisees is how to finance the initial investment. This guide outlines your options and explains what to expect so you can move forward with confidence.
Total Investment Overview
The total investment required to launch your AR Homes® franchise ranges from $535,000 to $2,190,000. This figure includes everything you need to get started:
- $65,000 Franchise Fee
- Costs for your required model home, including land, design, and build-out
- Startup costs such as equipment, licenses, insurance, and supplies
- Technology setup including computers and software
- Professional services such as legal and accounting
- Working capital to support operations for up to 12 months
What’s Covered in the Franchise Fee?
Your $65,000 franchise fee provides access to:
- Territory Rights to operate under the AR Homes® brand
- Training for two people covering construction, sales, marketing, finance, and project management
- Best practices for business operations
- Builder Systems and Technology including CRM and accounting tools
- Marketing Support to help launch your business and model home
- Vendor Network Access for materials, design services, and exclusive pricing
- Business Coaching to guide setup of operations, pricing, staffing, and sales strategies
Franchise Financing Options
There are several financing options to help you launch your business. These include:
- SBA Loans (Small Business Administration)
- ROBS (Rollover for Business Startups) to use retirement funds without penalties
- Conventional Bank Loans through traditional lenders
- Home Equity Lines of Credit (HELOCs) for those with property equity
- Unsecured Financing that does not require collateral
- Friends and Family contributions or loans
Note: AR Homes® does not offer in-house financing, but we can connect you with trusted lenders who specialize in franchise financing.
Ongoing Costs to Consider
Once your franchise is up and running, you’ll need to plan for these regular expenses. For a full list of fees, reference Item 6 in the Franchise Disclosure Document (FDD).
Some fees to consider include:
- Royalty Fees:
3.5% to 4.25% of the gross sales price of each home or home-and-lot package
- Minimum Royalty Payment:
Paid annually
- Brand fund:
0.25% of sales (capped at $25,000 per year)
- Software and Technology Updates & Fee:
Periodic hardware updates and upgrades as needed beyond the initial setup plus a monthly technology fee of $1,000
- Training Fees:
Additional costs if you choose to participate in in-person or advanced training modules
- Licensing and Insurance:
Annual renewal costs depending on your location and business structure
- Model Home Maintenance:
Ongoing upkeep to keep your model home in top condition
Ready to Get Started?
Financing your franchise may seem complex at first, but with the right plan and guidance, it becomes manageable. Our team is here to support you every step of the way.