Verified — real FDD extraction
SBA-eligible · directory code S0265 since 2017
Buddyâs Home Furnishings
Other · independent · est. —
Buddy's Home Furnishings is a rent-to-own retailer offering furniture, appliances, and electronics through flexible lease-purchase plans. A franchisee operates a showroom store with delivery and collections operations, serving credit-constrained households on weekly and monthly payment terms.
Buddyâs Home Furnishings net unit count declined -33.8% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Showing strain
Distress
The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.
Exit rate · latest year
36.3%
fiscal 2025, per Item 20
Cost to open
$376K–$798K
Item 7 total investment range
SBA loan defaults
Too few resolved
13 loans exist; too few resolved to rate
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 107 of 295 franchised outlets left the system — a 36.3% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 338 | 337 | 328 |
| Opened | 11 | 11 | 3 |
| Transfers | 0 | 6 | 0 |
| Terminations | 7 | 0 | 0 |
| Non-renewals | 0 | 1 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 3 | 18 | 107 |
| Outlets at end | 337 | 328 | 223 |
| Net change | -1 | -9 | -105 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 13 SBA-backed loans to Buddyâs Home Furnishings franchisees since 2015. Most are still open, so there is not yet a resolved cohort large enough to rate.
—
3 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$615,250
what recent franchisees borrowed
—
approval → charge-off, defaulted loans
5 vs 3
distinct banks still lending
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO BUDDYÂS HOME FURNISHINGS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $40K franchise fee (Item 5) and a total investment of $376K–$798K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$376K–$798K
all-in investment range
Franchise fee (Item 5)
$40K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Buddyâs Home Furnishings with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
The public record puts this brand toward the riskier end of the systems we score — but the evidence is thin, so treat it as a range, not a number.
Risk percentile (range)
72–96 / 100
Directional
Modeled SBA charge-off
18.1%
Observed SBA charge-off
no resolved cohort
Top drivers: Item 20 exit rate (raises) · Net unit growth (raises) · Investment ceiling (log) (lowers) · Item 3 litigation (log) (lowers). Thin loan history — treat this as a range, not a number. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Buddyâs Home Furnishings. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Buddyâs Home Furnishings's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →Buddyâs Home Furnishings franchise questions, answered from the filings
What percentage of Buddyâs Home Furnishings franchises closed last year?
In Buddyâs Home Furnishings's latest FDD Item 20 (fiscal 2025), 107 of 295 franchised outlets left the system — an annualized exit rate of 36.3%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Buddyâs Home Furnishings franchise cost?
Per Buddyâs Home Furnishings's 2026 FDD, buying in requires an initial franchise fee of $40K (Item 5) and a total initial investment of $376K–$798K (Item 7).
What royalty does Buddyâs Home Furnishings charge?
Buddyâs Home Furnishings charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.
Does Buddyâs Home Furnishings disclose earnings (Item 19)?
Yes — Buddyâs Home Furnishings makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $670K. Read it closely: franchisors choose which units and which metrics to include.