Red Barn Homebuyer Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$59,465 - $257,820
Franchise Fee
$31,050
Total US Locations
90
Business Summary
Red Barn Homebuyers, LLC offers franchises for a home-based real estate investment business. This involves purchasing, renovating, and selling properties (known as 'house flipping'), wholesaling properties where franchisees contract to buy a property and then sell the contract to a third-party investor, and referring property owners for traditional listings. The business utilizes a proprietary system that includes marketing and lead generation programs, property assessment tools, software, coaching, and a network of real estate professionals. Red Barn Homebuyers, LLC requires its franchisees to operate under a fictitious name to avoid brand recognition from its HGTV series when dealing with property owners, instead using its mark as a certification of training and adherence to system standards.
Corporate History
Red Barn Homebuyers, LLC was organized in Georgia on August 8, 2021. Its founder, Ken Corsini, previously operated a similar real estate investment business, Georgia Residential Partners, LLC, starting in 2005. Red Barn Homebuyers, LLC began offering franchises in April 2022. The company itself has never directly owned or operated a Red Barn real estate investment business. It has several affiliates: Red Barn Realty Group LLC (a licensed real estate company), Red Capital LLC (a financial services company offering loan brokering), Rock Springs Enterprises Inc. (offering financing for initial franchise fees), and Family Nest Franchise, LLC (which began offering franchises for move-management services in May 2025, but has not yet sold any).
Financial Overview
Investment Range
$59,465 - $257,820
Franchise Fee (Low)
$31,050
Franchise Fee (High)
$34,500
Royalty %
10%
Equipment Costs (Low)
$70
Equipment Costs (High)
$2,000
Working Capital
$22,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The Red Barn Homebuyers, LLC FDD highlights a special risk regarding the franchisor's financial condition, stating that it "calls into question the franchisor's financial ability to provide services and support to you." This concern is presented despite the audited financial statements in Item 21, which received an Unqualified opinion from the independent auditor, meaning the financial statements present fairly, in all material respects, the financial position in accordance with accounting principles generally accepted in the United States of America.
Financing Details
Red Barn Homebuyers, LLC offers financing assistance through its affiliates and a third-party partner. For initial franchise fees, its affiliate, RS Enterprises, offers a loan for up to 85% of the fees. This loan has a 180-day term, is interest-free for the first 90 days, and then accrues interest at 12% per annum. It is repaid in 6 monthly installments and requires a personal guarantee from all owners and their spouses, but no collateral. For property acquisition and renovation costs, Red Barn Homebuyers, LLC's affiliate, Red Capital, provides loan brokering services to connect franchisees with third-party lenders. Typical loan terms from these lenders may include a minimum 10% down payment, 7% to 13% interest per annum, and 0% to 3% origination fees, with repayment terms ranging from 9 months to 30 years. These loans usually require a personal guarantee and a first lien security interest in the property. For working capital, Red Barn Homebuyers, LLC has a relationship with Copper Rock Financial (an unaffiliated company), which can help franchisees secure a line of credit, typically ranging from $5,000 to $100,000. These lines of credit may offer 0% interest for 12 to 18 months and require personal guarantees from franchise owners. Copper Rock Financial charges a fee (the lesser of 10% of the credit line or $3,995) and pays Red Barn Homebuyers, LLC a rebate for each financing plan obtained by franchisees.
Performance Metrics
Total US Locations
90
Franchised Units
86
Corporate Units
3
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Red Barn Homebuyers, LLC has no litigation history that is required to be disclosed in Item 3 of its FDD.
Bankruptcy History
Red Barn Homebuyers, LLC has no bankruptcy information to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Red Barn Homebuyers, LLC franchisees must not be in default of any agreement, provide timely written notice of their intent to renew between 210 and 270 days before the current term expires, sign the franchisor's then-current form of franchise agreement (which may have materially different terms), sign a general release of claims (subject to state law), pay a $1,000 renewal fee, and upgrade their Technology Systems and equipment to meet current brand standards. The franchisor reserves the right to modify territory boundaries and the formula for shared territories upon renewal.
Training & Support Program
Franchisor Assistance
Red Barn Homebuyers, LLC provides extensive assistance to its franchisees. Before opening, Red Barn Homebuyers, LLC offers access to its confidential Manual, provides specifications for required goods and services along with supplier lists, and conducts an initial online training program for the Managing Owner and designated manager. During operations, Red Barn Homebuyers, LLC provides access to a lead generation program administered by a designated marketing company, licenses its proprietary Red Barn Central (RBC) software for managing daily operations, and offers personal coaching for the first 20 closed transactions. Red Barn Homebuyers, LLC also provides general guidance to improve business operations and develops, hosts, and maintains a local microsite for each business. Franchisees gain access to various tools and resources, including weekly live training, national material discount programs, and exclusive accounting systems. Red Barn Homebuyers, LLC may also provide guidance on property renovation (for a fee after the initial 20 transactions), conduct periodic field visits, establish a brand fund, negotiate purchasing agreements with suppliers for discounts, and host periodic conferences.
Initial Training Hours
104
Training Location
Online/remotely conducted
Ongoing Support
After opening, Red Barn Homebuyers, LLC franchisees receive ongoing support including weekly live training programs and personalized coaching for their first 20 closed transactions. Red Barn Homebuyers, LLC provides access to proprietary software like Red Barn Central (RBC), Investorlift, and BatchLeads, along with tech support for RBC. Franchisees benefit from a 'Done-For-You Marketing Program' which funnels leads to them, access to hard money lenders, a national material discount program, construction and renovation support, and an exclusive accounting system. Red Barn Homebuyers, LLC also offers guidance to improve business operations and develops/maintains local microsites. Optional support includes additional personal coaching for transactions beyond the first 20 (for a fee), guidance on property renovation (for a fee), periodic onsite field visits, and participation in national member events and conferences. The franchisor also facilitates discounted purchasing programs with suppliers like Sherwin Williams, Home Depot, and ProSource.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Red Barn Homebuyers, LLC defines territories primarily by county, city, or other municipal boundaries. Each territory must have a minimum population of 250,000. If a territory's population exceeds 500,000, Red Barn Homebuyers, LLC may designate it as a "Shared Territory," allowing more than one franchise to operate within it. However, the franchisor will limit the number of Red Barn businesses to no more than one per every 250,000 residents in such a shared territory. These population figures are based on the most recent U.S. Census Bureau data at the time the territory is established.
Staffing Notes
Red Barn Homebuyers, LLC requires franchisees to designate an approved 'Managing Owner' who is primarily responsible for the overall management and supervision of the business. The Managing Owner must hold at least a 10% ownership interest and successfully complete all required training. While the Managing Owner is not required to provide onsite management if a designated manager is hired, either the Managing Owner or the designated manager must dedicate full-time efforts to the business. Any designated manager must also complete required training and sign a confidentiality agreement. The Managing Owner is responsible for monitoring and supervising the designated manager. Franchisees are solely responsible for determining appropriate staffing levels, hiring, training, and supervising their employees, and for all employment-related decisions and costs, ensuring employees understand they are employed solely by the franchisee and not by Red Barn Homebuyers, LLC. Employees who access confidential information must sign a confidentiality agreement.