Anchored Tiny Homes Positioned to Take Over the Tiny Home Industry (ADU), with Corporate Location Reaching $49.2m in 2022

What started as filling a gap in an inflated housing market, quickly grew into what could be one of the fastest growing franchises in the home improvement space ever. Launched in 2019, Anchored Tiny Homes began as a family business that grew from a place of entrepreneurial spirit and pure demand. That entrepreneurial hustle and demand drove a fast climb. According to the brand’s 2023 FDD, its 10 corporate territories secured nearly $50 million ($49,380,188 to be exact) in gross sales in 2022. 

“There are times in a culture where, if you can join something early on, you can make a massive impact and make a lot of money. I think we’re early on enough both in the industry and as a company that there will be opportunity in various markets nationwide,” said Colton Paulhus, the brand’s co-founder and CEO Paulhus said. “We’re just on the ground floor of ADUs solving the housing crisis. Multiple states are approving them on a statewide level, and as we expand through franchising, we’re going to sell out markets and become the name for tiny homes nationwide.

“In the past few years, we’ve shifted from tiny homes on wheels to ADUs to better support our mission of helping people become financially free, keeping families close and making housing options available for more Americans.”

In the first quarter of 2023, homes nationwide sold for an average of $436,800, with costs skyrocketing for larger, newer homes and in higher-demand markets. As prices continue to rise, inventory remains an issue, with CNN reporting that the U.S. housing market is short by over six million homes. With aging parents seeking to downsize and recent college graduates in need of a place to live, tiny homes, specifically those constructed as accessory dwelling units (ADUs), have grown to be a key player in pushing back against supply and pricing challenges.

Entrepreneurs battle through to find untapped franchise market 

Much like those who will become franchise owners with Anchored TIny Homes, Paulhus was born to be a business owner – he just had to figure out his path. 

After college graduation, Paulhus worked in the insurance space.

“I actually got an insurance job,” he said. “But I felt this itch to try something — to get in the game of entrepreneurship.”

After launching a mobile app, pivoting to a clothing line, starting a water bottle company and founding a marketing agency, Paulhus still found himself seeking more, searching for the business model that would truly fulfill him. 

In 2019, Paulhus noticed an ad on Facebook Marketplace for a tiny home on wheels and approached his father, a construction industry veteran, about the possibility of building their own. After making his own post, Paulhus received hundreds of inquiries, and he and his father sold their first tiny home for $82,000.

“We’re made up of two generations of builders and are a family-owned and operated business,” he explained. “After 30 years of servicing the northern California community, we decided to take on the tiny home market in an effort to do our part.”

Through Anchored Tiny Homes, Colton Paulhus, his father Scott and brother Austin are on a mission to positively impact the earth as well as the lives of those they serve and work with.

Why Anchored Tiny Homes?

As the first franchisor in the industry, Anchored Tiny Homes is positioned to take off, quickly becoming a national leader in ADU construction. 

The business model is simple. When franchisees invest with Anchored Tiny Homes, they receive expert support to guide them through the process as they work to sell tiny homes, secure general contractors and project manage build-out in their unique markets. 

In addition to a proven business model and robust guide to building an ADU, Anchored Tiny Homes’ corporate team of experts fully manages marketing and appointments for local owners, meaning franchisees can focus even more intently on closing the deal.

“At the corporate level, we’re taking care of all of the franchisees’ lead generation and marketing. We qualify the leads and book appointments for them,” Paulhus explained. “That’s what’s so special about us. We know how to market, identify and qualify potential customers, and we can teach franchisees the rest.”

Further, because the brand’s leadership has decades of firsthand experience in the construction space, it can provide detailed support and guidance for franchisees as they work to select the local general contractors that will complete a project once sold.

“We can’t interface with the contractors for the franchisees, but we can give them the information and guidance they need to choose the best builder and ensure the project is completed in a satisfactory manner,” he added.

The beauty of the Anchored Tiny Homes business, and the larger ADU market, lies in the fact that franchisees need not close hundreds of deals daily. The franchisor has developed a relatively low-cost model, with an initial investment that ranges from $161,250 to $287,000, and offering the potential to make millions.

“The earning potential on each individual product is huge,” Paulhus said. “You don’t have to make a lot of burger sales to get a high sales number. If the franchisee can figure out how to sell the product, which we provide support for, the growth potential is huge.”

The Potential Available to Those Who Get In Early

Due to the current state of the housing market, many recent college graduates find themselves looking to move back home, and aging parents who are in need of a downsize are unable to purchase a smaller house independently or pay for monthly assisted living. In many cases, these individuals find themselves weighing the possibilities of a new home, which can easily cost half a million or more, or some alternative living arrangements, like an accessory dwelling unit.

In many cases, an ADU provides an ideal solution, allowing the family to reunite on a single piece of property while maintaining affordability, privacy and independence.

“As consumers become more aware of the value of ADUs, Anchored Tiny Homes franchisees will be the first movers in their markets to specialize in the product,” Paulhus said. “They will be prepared to tap into pent-up demand and begin to make sales within the first few weeks of launch.”

The Future of Anchored Tiny Homes

Looking to the future, Paulhus says Anchored Tiny Homes seeks to award 25 territories in 2023. With multiple territories already in the works, the franchisor continues to focus on establishing itself in major metros.

“We’re pretty open to markets nationwide; the need is pervasive almost everywhere,” Paulhus said. “However, we’re aware that the major metros host an even higher demand. Places like Southern California, Oregon, Washington, Texas, Florida, New York and New Jersey have already proven to be promising.”

The franchisor also encourages prospective business owners in states that have already passed wide-reaching ADU-approval legislation to inquire.

Anchored Tiny Homes franchisees need not have extensive backgrounds in construction. Within the business, there are four primary buckets: sales, design, permitting and construction. Paulhus explained that, with the help of the corporate team, the franchisee conducts sales, and the remaining steps are outsourced. 

“The primary trait we’re looking for in franchisees is a hunger to make a difference. We need someone who is genuinely passionate about solving the housing crisis, not just an investor who came across some money and is looking to distribute it somewhere,” he said. “Our values are all about faith, family and solving the housing challenge, and we seek to treat our employees, partners and customers like members of our ever-growing family.”