AR Homes logo
Luxury home building

Investment

$535,000

Initial Franchise Fee

$65,000

Units

37

Growth Rate

-19%

Overview About Investment Territories Support Operations Ranking History

Overview

Industry Services (Other)
Founded 1990
Franchising Since 1991
Parent Company AR Franchising Inc.
Leadership Don Whetro, CEO
# of Employees at HQ 65

Units and Growth Chart

About AR Homes

Arthur Rutenberg, the founder of AR Homes, started his journey in the realm of one-of-a-kind custom home designs back in 1953. What started as a humble endeavor has now blossomed into a custom-luxury home building franchise. AR Homes prides itself on offering customers both innovative, award-winning designs and a personalized buying experience.


Known for its commitment to refined materials, impeccable craftsmanship, and leading design, AR Homes has a network of over 40 franchises spread across ten states.

Why You May Want to Start an AR Homes Franchise

AR Homes strives to offer its clients expert advice from local professionals with acute knowledge of the latest market and building practices. Clients can preview high-quality model homes, with the final product being backed by a builder's guarantee. Boasting hundreds of designs ranging from 2,000 to 7,000 square feet, future homeowners can plan alongside designers and builders to customize a perfect house with powerful architectural design technology and transparent pricing.

AR Homes values cutting-edge home designs, a passion for quality materials and expertise, and a devotion to providing a personalized and pleasant customer experience. If you're looking to get building as a strong leader in collaborative, localized company culture, then you may have knocked on the right door.

What Might Make an AR Homes Franchise a Good Choice?

Thanks to state-of-the-art design and budgeting software, customers may receive as much hands-on experience as they wish. What's more, franchisees will likely get access advantages such as first-rate business intel, strategy, resources, and proprietary tools.

If you are awarded a franchise, you are backed by comprehensive training and support programs; AR Homes franchisees come from diverse backgrounds, yet are united by a dedication to luxury home design and building. If you're looking to become the next AR Homes franchisee, you will have to sign a term agreement of 10 years and accept the royalty fee.

Though on-the-job training varies, franchisees can expect several dozen hours of classroom training. Meanwhile, AR Homes offers a suite of ongoing and marketing support, including field operations, security and safety procedures, site selection, ad templates, social media, email marketing, and much more.

How To Open an AR Homes Franchise

To be part of the AR Homes team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements. 

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the AR Homes franchising team questions. 

Once you've staffed, established local contacts, and opened for business, you may have just laid the foundation for many luxury homes to come.

Investment Details

Initial Franchise Fee $65,000
Initial Investment $535,000 - $2,190,000
Net Worth Requirement $2,000,000
Cash Requirement $450,000
Royalty Fee 3.5%-4.25%
Ad Royalty Fee 0.25%
Technology Fee $1K./mo.
Term of Agreement 10 years
Is Franchise Term Renewable? Yes
Financing Third Party
Veterans Incentive N/A

Available Territories

Franchising opportunities available in the following regions

Training & Support Programs

Comprehensive training and ongoing support to help you succeed

Training

On the Job Training Varies
Classroom Training 151-159 hours

Ongoing Support

Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Field Operations
Proprietary Software
Franchisee Intranet Platform

Marketing Support

Ad Templates
Social Media
SEO
Website Development
Email Marketing

Operations & Requirements

Key operational details and requirements for running this franchise

Is absentee ownership allowed? No
Can this franchise be run from home/mobile unit? No
Can this franchise be run part time? No
# of employees required to run 0
Are exclusive territories available? No

Ranking History

AR Homes performance in the Franchise rankings over recent years

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022