Anchored Tiny Homes Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$113,750 - $185,000
Total US Locations
7
Business Summary
Anchored Tiny Homes operates a business that specializes in the design, sale, and installation of customized tiny home accessory dwelling units (ADUs), affordable homes, and related services and products. The business model involves providing these services directly at customer locations, with administrative operations potentially managed from a home-based office.
Corporate History
Anchored Tiny Homes Franchising, LLC was founded on January 17, 2022, in Wyoming. The company's primary business is operating the Anchored Tiny Homes franchise system, which involves designing, selling, and installing customized tiny home accessory dwelling units and related services. Anchored Tiny Homes began offering franchises in February 2022. The company does not have any predecessors or parent companies, and it has not previously offered franchises in other lines of business. An affiliate, Anchored Tiny Homes, Inc., a California corporation established in September 2019, operates a business similar to the franchised model.
Financial Overview
Investment Range
$113,750 - $185,000
Franchise Fee (High)
$1,667,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$15,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Anchored Tiny Homes Franchising, LLC has a short operating history and has reported net losses of $69,929 in 2022 and $448,089 in 2023. The company also has negative shareholder equity, indicating that its liabilities exceed its assets. A "Special Risk" in the FDD specifically highlights that Anchored Tiny Homes' financial condition "calls into question the franchisor's financial ability to provide services and support to you." Due to these financial concerns, several states, including Illinois, Maryland, Minnesota, and North Dakota, require Anchored Tiny Homes to defer the collection of initial franchise fees from franchisees until all pre-opening obligations are met and the franchised business is operational. Despite the losses, Anchored Tiny Homes significantly increased its cash on hand from $29,920 in 2022 to $858,242 in 2023, and its current assets currently exceed its current liabilities, indicating positive working capital for immediate needs.
Financing Details
Anchored Tiny Homes does not offer any direct or indirect financing to its franchisees. This means franchisees will need to secure all necessary funding, including loans or leases, from third-party lenders or other sources independently. Anchored Tiny Homes also does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
7
Franchised Units
6
Corporate Units
1
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Anchored Tiny Homes Franchising, LLC has no litigation to report in Item 3 of its FDD. This indicates that the company and its management have not been involved in any material litigation, such as administrative, criminal, or civil actions, alleging violations of franchise law, fraud, or similar serious allegations, that are required to be disclosed under franchise regulations.
Bankruptcy History
Anchored Tiny Homes Franchising, LLC has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of this FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Anchored Tiny Homes franchise, franchisees must be in full compliance with their Franchise Agreement and all related ancillary agreements, including those signed by their owners and spouses. They need to provide Anchored Tiny Homes Franchising, LLC with written notice of their intent to renew between 180 and 270 days before the current term expires. Franchisees must also demonstrate their continued ability to operate the business, ensure their administrative office meets current standards, satisfy all maintenance and upgrade obligations, and pay a $10,000 renewal fee. Furthermore, they will be required to sign Anchored Tiny Homes Franchising, LLC's then-current form of Franchise Agreement and related ancillary agreements for the renewal term, which may contain materially different terms. All owners and their spouses must personally guarantee the terms of the new agreement and sign a general release in favor of Anchored Tiny Homes Franchising, LLC. Any additional training designated by Anchored Tiny Homes Franchising, LLC must also be completed to their satisfaction.
Training & Support Program
Franchisor Assistance
Anchored Tiny Homes Franchising, LLC provides various forms of assistance to its franchisees. Before opening, Anchored Tiny Homes Franchising, LLC grants the right to operate within a designated territory, reviews and approves the administrative office site, provides access to confidential operations manuals, and supplies a list of approved suppliers for products, equipment, and signs. Anchored Tiny Homes Franchising, LLC also lists the franchisee's business on its website and offers an initial training program for the franchisee, their managing owner, and two designated managers at no additional charge (travel and living expenses are the franchisee's responsibility). After opening, Anchored Tiny Homes Franchising, LLC communicates operating standards and procedures, provides updates on Approved Services and Products, designates System Supplies and approved suppliers, and establishes marketing standards. Anchored Tiny Homes Franchising, LLC may also coordinate an annual system conference for franchisees. Supplemental training can be provided if requested or required, with a fee of $600 per trainer per day plus expenses. Anchored Tiny Homes Franchising, LLC offers initial training for replacement operating managers for a fee of $500 per manager per day. Anchored Tiny Homes Franchising, LLC also administers a Brand Development Fund and may establish advertising cooperatives. Franchisees are required to use designated computer systems (e.g., GoHighLevel CRM) and bookkeeping services, for which they are responsible for costs and maintenance.
Initial Training Hours
93
Training Location
Fair Oaks, California or Franchisee's location
Ongoing Support
Anchored Tiny Homes Franchising, LLC provides continuous support to its franchisees after opening by communicating updated operating standards, procedures, and System requirements. This includes establishing and updating Approved Services and Products, designating System Supplies, and approving suppliers. Anchored Tiny Homes Franchising, LLC also sets and communicates marketing and brand standards, including approving or disapproving franchisee marketing materials and digital media. Franchisees are required to participate in an annual System conference, for which they pay a fee not exceeding $1,000, plus their own travel and lodging. Supplemental training may be offered or required, at a cost of $600 per trainer per day plus expenses. Initial training for replacement Operating Managers is also available for a fee of $500 per person per day. Anchored Tiny Homes Franchising, LLC administers marketing funds, including a Brand Development Fund (currently 1% of Gross Sales), and may establish local or regional advertising cooperatives (capped at $5,000 per month contribution). Franchisees must also use a designated contact center and pay a monthly fee (greater of 2% of Gross Sales or $1,000 per territory per month) for its services. Furthermore, Anchored Tiny Homes Franchising, LLC designates required computer systems and bookkeeping services, with ongoing maintenance and monthly fees paid by the franchisee. The franchisor also conducts market research and testing, requiring franchisee participation.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
full-time
Territory Type
limited
Territory Size Requirements
Anchored Tiny Homes defines its territories primarily based on population. A single Anchored Tiny Homes territory generally includes a geographic area with a population of up to 300,000 people. If a franchisee chooses to purchase additional territories, each will also be comprised of a geographic area containing up to 300,000 people. The population is calculated using raw data and does not consider demographics or age. The exact scope and size of an Anchored Tiny Homes operating territory can vary based on local factors and market conditions at the time of signing the franchise agreement.
Staffing Notes
Anchored Tiny Homes requires that its franchised businesses be managed and operated under the active, full-time, on-site supervision of a 'Managing Owner'. This Managing Owner must be approved by Anchored Tiny Homes, dedicate their full efforts to the business, and hold at least a 25% equity interest in the franchise. They must also successfully complete Anchored Tiny Homes' initial training and obtain all necessary licenses and permits. If the Managing Owner chooses to delegate daily management, they may hire an 'Operating Manager'. This Operating Manager must meet Anchored Tiny Homes' minimum standards and criteria for managers, complete the initial training program, and sign confidentiality and non-competition agreements, agreeing to assume on-site management. Beyond these management roles, Anchored Tiny Homes states that the franchisee is directly responsible for the hiring, training, management, and supervision of all other employees. All employees who may access confidential information must sign a confidentiality agreement. Employees are also required to wear approved System-branded apparel and uniforms and adhere to all system standards for product preparation and service.