NextHome Franchise
Cost, fees, owner earnings, closure rate and litigation for a NextHome franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
NextHome discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
NextHome does not make representations about franchisee financial performance or potential. No past performance data provided. Franchisor employees unauthorized to make oral or written financial representations.
What a NextHome franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $10,000 | Item 5 — paid up front, before you open |
| Royalty | 1.67% of gross sales | Item 6 — charged on revenue, not profit |
| Total recurring fees | 1.67% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $16,750 – $241,595 | Item 7 — franchisor's own low/high estimate |
Royalties vary by model ($200-485/month plus transaction fees). Large Office Model: $2,500-2,750 annual fee caps. Minimum $108K annual fees for Large Office.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
NextHome system size and owner turnover
| Total outlets | 587 |
| Ceased operations | 39 |
| Terminated by franchisor | 4 |
| Transferred to new owners | 9 |
| Closure rate | 6.6% of outlets |
Declining outlets: 587 (down 21 from 608). Ceased operations: 39 annually. Antitrust litigation ongoing.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is NextHome worth it? — how it compares to 436 similar franchises
| Ongoing fees | 1.67% of sales | lower than most (median 8%) |
| Startup cost | from $16,750 | cheaper than most (median $138,750) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 6.6% of outlets | worse than 79% of peers |
| Disclosed lawsuits | 5 | more litigious than 83% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a NextHome
The franchisor's framing: NextHome does not make representations about franchisee financial performance or potential… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
NextHome franchise — frequently asked
- How much does a NextHome franchise cost?
- The FDD lists a total initial investment of about $16,750–$241,595, including a $10,000 initial franchise fee.
- How much do NextHome franchise owners make?
- NextHome discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the NextHome franchise fees?
- NextHome's FDD discloses a $10,000 initial franchise fee, a 1.67% royalty on gross sales, for roughly 1.67% of gross sales in recurring fees before rent, labor, or debt service. Royalties vary by model ($200-485/month plus transaction fees). Large Office Model: $2,500-2,750 annual fee caps. Minimum $108K annual fees for Large Office.
- What is the NextHome franchise profit margin?
- NextHome discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the NextHome franchise failure rate?
- Declining outlets: 587 (down 21 from 608). Ceased operations: 39 annually. Antitrust litigation ongoing.
- How many NextHome locations are there?
- NextHome's FDD reports 587 total outlets, with 39 that ceased operations in the most recent reporting year and 9 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does NextHome have complaints or lawsuits?
- NextHome discloses 5 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a NextHome franchise worth it?
- It depends on the numbers, not the pitch. NextHome scores F on disclosure honesty, carries about 1.67% of sales in ongoing fees, and discloses 5 legal matters. Get the real owner take-home before you sign.
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Compare NextHome to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with NextHome or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.