Ar Homes Franchise FDD, Costs & Fees (2025)

AR Homes designs and builds custom luxury homes, providing personalized service and high-quality craftsmanship to create dream homes for clients.

AR Homes® is a luxury custom home building franchise founded by Arthur Rutenberg in 1990 in Clearwater, Florida. The company began franchising in 1991, launching its first franchise in the Tampa area. Today, AR Homes® operates more than 40 independently owned franchise locations across several U.S. states.

Headquartered in St. Petersburg, Florida, AR Franchising, Inc. supports its franchisees with a dedicated corporate team of experts in residential design, marketing, purchasing, IT, interior design, and accounting.

The franchisor equips franchise owners with exclusive tools like ARIS software, 3D virtual tours, and proprietary online platforms to streamline operations and enhance customer experience.

AR Homes® specializes in the sale of high-end, custom single-family homes. The brand offers fully furnished model homes, immersive virtual walkthroughs, in-house interior design, and a Smart Bid purchasing system.

What sets AR Homes® apart is its combination of luxury, technology, and local customization. The brand was an early innovator of model-home franchising and open-concept floor plans.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $50,000
Model Home $100,000 to $850,000
Opening Inventory and Supplies $1,000 to $5,000
Computer System $1,500 to $5,000
Insurance $5,000 to $7,000
Training Expenses $500 to $2,000
Business Licenses and Permits $1,000 to $3,000
Professional Fees $1,000 to $5,000
Additional Funds - 12 months $250,000 to $700,000
TOTAL $410,000 to $1,627,000

Franchise Disclosure Document

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Training

AR Franchising, Inc. provides a comprehensive training suite to new franchisees of AR Homes®, structured into multiple programs designed to prepare franchise owners and their staff for operational success. The training includes the following:

  1. New Franchise Onboarding and Orientation Program: This is the foundational training and includes a 40-hour classroom-based orientation. It covers new employee orientation, brand introduction, vendor meetings, price list creation, and budget planning for model jobs. On-the-job training hours vary depending on the franchisee’s needs.
  2. Initial Training Program: Franchise owners, Building Company Presidents, and sales personnel are required to complete this program. Training may be delivered at headquarters, the Charlotte regional office, or remotely, and must be completed within 24 months of signing the franchise agreement. It includes sales-specific instruction and use of proprietary systems like ARIS.
  3. Ongoing Training Program: After the initial period, continuing education and support are provided through classroom sessions, remote assistance, or online self-paced modules. While online modules are free, other formats incur a fee beyond the initial 24-month period.

Territory Protection

AR Homes® franchisees are granted the right to operate within a defined geographic area referred to as the "Territory." This Territory is established in the Franchise Agreement and is based on governmental or geographic boundaries.

Franchisees are permitted to build and sell homes only within their designated Territory, and the Model Home must be located within this area. While AR Homes® does define and assign a specific Territory to each franchisee, this does not necessarily mean full territorial exclusivity.

The franchisor reserves the right to operate and grant other franchises outside the specified Territory, and franchisees are prohibited from conducting business outside their assigned area. Additionally, the operation of multiple Model Homes within the Territory is allowed but subject to the franchisor’s approval.

Number of units

2023
Franchised units

43

46

42

Company-owned units

0

0

0

Total units

43

46

42

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