Franchise Deep Dive: Anchored Tiny Homes Franchise Costs, Fees, Profit and Data

LAST UPDATED: May 2023

FRANCHISE WEBSITE: https://anchoredtinyhomes.com/franchise 

NUMBER OF LOCATIONS: 10

REPORTED COST TO GET IN: $136,250-262,000

REPORTED ROI (Item 19): $4,928,018

Anchored Tiny Homes, a national tiny home building franchise that specializes in the construction of custom accessory dwelling units (ADUs), has quickly become a giant in the space. Founded by a family with a strong history in construction and a passion to solve the housing crisis, Anchored Tiny Homes is creating more affordable housing options while supporting Americans in creating additional income streams from multiple angles.

How Many Anchored Tiny Homes Locations Are There?

Because Anchored Tiny Homes just recently began franchising, there are currently just 10 corporate-owned territories in the system. However, franchise inquiries are flowing in, and the team expects to sell out multiple markets very quickly.

Because it is the only franchisor in the space offering such a unique business model, the company is drawing in investors quite easily, priming itself to explode nationwide.

As it expands, the franchisor is open to national growth, but leadership says it is focusing more closely on states where ADUs have been widely approved, as this will make operations more streamlined for local owners.

What Is the Anchored Tiny Homes Business Model?

Anchored Tiny Homes is a custom, stick-built tiny home franchise. For consumers, the franchise offers a white-glove-type service that manages the design, permitting and construction of a tiny home — typically an ADU. With customizations, the designs can be made to match the primary residence, adapt to any special medical needs of intended residents and otherwise be built in line with the unique needs of the family.

This allows franchisees to bring an in-demand product to a range of clients. Typically, families looking to reunite on a single piece of land and investors looking to add revenue streams to existing owned properties are the primary customers.

A major benefit of the franchise model is that franchise owners are supported throughout the process and are able to focus the majority of their efforts on closing deals. The corporate team manages marketing, lead generation and appointment booking, allowing owners to step in at the time of the appointment. Once a deal is closed, the franchise owner has access to a network of qualified architects and general contractors who complete the design, permitting and build of the tiny home itself.

How Much Can Anchored Tiny Homes Franchise Owners Make?

According to the brand’s 2023 franchise disclosure document, its 10 corporate territories brought in over $49 million in gross sales in 2022. On average, each territory grossed almost $5 million. 

The highest-grossing territory secured $8,911,794 in revenues, and the lowest-grossing territory secured $2,801,369 in revenue.

How Much Does It Cost to Open an Anchored Tiny Homes?

The total estimated cost to launch an Anchored Tiny Homes business is $161,250–$287,000. This range includes:

• Initial Franchise Fee: $75,000
• Construction and Leasehold Improvements: $0–$20,000
• Storage Unit: $0–$6,000
• Furniture, Fixtures and Equipment: $2,000–$8,000
• Initial Inventory: $500–$1,000
• Computer, Software and Business Management System: $3,000–$10,000
• Service Vehicle: $1,000–$5,000
• Start-Up Marketing: $15,000–$25,000
• Utility Deposits: $250–$1,000
• Architect Fees: $7,000–$8,000
• Signage: $2,000–$10,000
• Insurance Deposits — Three Months: $1,000–$5,000
• Travel for Initial Training: $2,000–$6,000
• Professional Fees: $1,500–$5,000
• Licenses and Permits: $1,000–$2,000
• Additional Funds — Three Months: $25,000–$75,000

What Is the Franchise Fee for Anchored Tiny Homes?

Anchored Tiny Homes charges a $75,000 franchise fee. As investors commit to additional territories, the franchise fee decreases incrementally with each additional commitment.

Who Is the Leadership of Anchored Tiny Homes?

• Colton Paulhus—CEO and Co-Founder
• Austin Paulhus—COO and Co-Founder
• Scott Paulhus—Owner and Co-Founder

What Helpful Articles Can I Read To Learn More?

• Become An Anchored Tiny Homes Franchisee!

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