Buddy’s Home Furnishing Franchise FDD, Profits & Costs (2025)

Buddy’s Home Furnishing, established in 1961, is a leading rent-to-own franchise specializing in furniture, appliances, electronics, and computers. Headquartered in Tampa, Florida, the brand has grown to over 300 franchise and corporate locations nationwide, offering customers flexible payment plans tailored to their needs.

The company differentiates itself through a customer-first approach, featuring a lifetime reinstatement program that protects customer investments.

Its diverse product selection includes name-brand items, ensuring access to the latest styles and technology. Buddy’s also provides pre-leased merchandise at discounted rates and guarantees 24-hour delivery for in-stock items, emphasizing convenience and affordability.

Buddy’s decades of experience, commitment to quality, and innovative programs have established it as a trusted name in the rent-to-own industry, appealing to customers seeking value and flexibility.

Initial Investment

How much does it cost to start a Buddy’s Home Furnishing franchise? It costs on average between $376,000 – $798,000 to start a Buddy’s Home Furnishing franchised facility.

This includes costs for location setup, furniture, appliances, inventory, and initial operating expenses. The exact amount depends on various factors, including the size and type of store, the location, and whether the franchisee chooses to lease or purchase the property.

Type of ExpenditureAmount (Low – High)
Initial Franchise Fee$39,900 – $39,900
Leasehold Improvements$2,000 – $109,000
Furniture, Fixtures, and Equipment$12,000 – $25,000
Computer System$3,150 – $3,750
Signs$500 – $2,580
Three Months’ Rent$6,600 – $39,627
Security Deposits for Lease and Utilities$7,500 – $21,000
Initial Inventory$192,000 – $398,683
Insurance$4,000 – $9,000
Training Expenses$2,000 – $4,000
Grand Opening Advertising/Marketing$10,000 – $25,000
Professional Fees, Business Licenses, and Permits$1,000 – $10,000
Additional Funds (3-month period)$95,000 – $110,000
TOTAL$375,650 – $797,540

Average Revenue (AUV)

How much revenue can you make with a Buddy’s Home Furnishing franchise? A Buddy’s Home Furnishing franchised SHOP makes on average $778,000 in revenue (AUV) per year.

Here is the extract from the Franchise Disclosure Document:

Buddy's Home Furnishing fdd item 19 extract

This compares to $418,000 yearly revenue for similar housing franchises. Below are a few Buddy’s Home Furnishing competitors as a comparison:

Buddy's Home Furnishing franchise competitors

Buddy’s Home Furnishing Franchise Disclosure Document

Frequently Asked Questions

How many Buddy’s Home Furnishing locations are there?

As of the latest data, Buddy’s Home Furnishings operates a total of 337 locations, consisting of 303 franchised units and 34 company-owned units. This robust network reflects the brand’s significant presence in the rent-to-own market, highlighting its appeal to both franchisees and customers seeking flexible ownership options.

What is the total investment required to open a Buddy’s Home Furnishing franchise?

The total investment required to open a Buddy’s Home Furnishing franchise ranges from $376,000 to $798,000.

What are the ongoing fees for a Buddy’s Home Furnishing franchise?

Buddy’s Home Furnishings requires franchisees to pay a royalty fee of 6% of gross sales, which is waived for the first six months of operation. Additionally, franchisees contribute up to 2% of gross sales towards marketing efforts.

What are the financial requirements to become a Buddy’s Home Furnishing franchisee?

To qualify as a franchisee for Buddy’s Home Furnishings, candidates are typically required to have a minimum net worth of $750,000 and at least $200,000 in liquid capital. These financial prerequisites are designed to ensure that franchisees possess the necessary resources to effectively establish and manage a Buddy’s Home Furnishings franchise.

How much can a Buddy’s Home Furnishing franchise owner expect to earn?

The average gross sales for a Buddy’s Home Furnishing franchise are approximately $0.78 million per location. Assuming a 15% operating profit margin, $0.78 million yearly revenue can result in $117,000 EBITDA annually.

Who owns Buddy’s Home Furnishing?

Buddy’s Home Furnishings is owned by Franchise Group, Inc., an American holding company specializing in franchised and related businesses. Franchise Group acquired Buddy’s in 2019 and has since overseen its operations and expansion.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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