How much does a NextHome franchise cost?
A prospective U.S. franchisee should plan around two official investment ranges. The 2026 Franchise Disclosure Document lists $16,750 to $236,595 for a new or converted office under the Standard Model and $26,750 to $241,595 for a new or converted office under the Large Office Model. These are total Item 7 ranges, not cash-on-hand requirements and not just the Initial Franchise Fee.
Data basis: NextHome, Inc., 2026 Franchise Disclosure Document, issued January 7, 2026 and amended February 13 and May 29, 2026; Items 5, 6 and 7, with cost-relevant provisions from Items 8, 10, 11 and 17. Formats reviewed: Standard Model and Large Office Model. Information checked July 20, 2026. No matching copy of this FDD was located on an official franchise-controlled public website, so FDD Item and page references below are intentionally unlinked. The disclosure states that eXp World Holdings became the ultimate parent on May 6, 2026; a parent-company announcement dated May 7 confirms the acquisition. See the official acquisition announcement.
Shared scale: $0 to $250,000. Each bar shows the official low and high bound.
Interpretation: the two opening ranges overlap substantially. The 2026 FDD says the larger-office format is not expected to materially increase the initial investment except for its $15,000 entry fee, but its post-opening fee obligations are different. Source: 2026 FDD, Item 7, pp. 30-32.
The official NextHome U.S. franchising page also describes flexible one-year and five-year agreements and identifies separate paths for small and mid-size brokerages, teams, and larger multi-office operators. A Wisconsin government registry lists NextHome, Inc. among active franchise registrations, with an expiration date of January 7, 2027.
What is included in the initial investment?
The 2026 Item 7 total includes the Initial Franchise Fee plus premises, office setup, required operating assets, pre-opening expenses, and Additional Funds. The range applies to both a newly established office and the conversion of an existing real estate brokerage, but the FDD expects conversions to be nearer the low end for leasehold improvements and deposits.
Premises and office setup
The premises portion can range from a home-based administrative setup to a fully fitted commercial office, so occupancy and buildout assumptions require local quotes.
| Cost entity | 2026 disclosed amount | Payment timing and basis |
|---|---|---|
| Office Lease | Usually $1.50-$2.00 per sq. ft. monthly | Paid monthly to the landlord or sublessor. Item 7 includes an estimate for one month of rent before opening. |
| Construction, remodeling and leasehold improvements | $0-$50,000 | Paid as contractors require. Prior use, local code, labor, materials and landlord contribution drive the range. |
| Equipment, computers, decor, furniture and fixtures | $500-$25,000 | Paid as suppliers require. |
| Office supplies, brochures and stationery | $500-$4,000 | Paid as vendors require. |
| Signs | $1,000-$4,000 | Paid as sign suppliers require. |
| Security and utility deposits, business licenses and prepaid expenses | $500-$3,500 | Paid as required. Lease security deposits normally equal one or two months of rent. |
Source: 2026 Franchise Disclosure Document, Item 7, pp. 30-32.
Pre-opening expenses and working capital
The remaining opening categories cover insurance, professional requirements, optional in-person orientation costs and the cash buffer used before and during early operations.
| Cost entity | 2026 disclosed amount | What it covers and when paid |
|---|---|---|
| In-Person Training Expenses | $0-$15,000 | Remote initial orientation normally creates no orientation expense. For approved in-person delivery, the franchisor estimates about $6,000 for two days or $12,000 for four days, including its consulting and travel-related costs; attendee travel to another specified location is estimated at another $2,000 to $3,000. The Item 7 line caps the disclosed range at $15,000. |
| Insurance | $1,500-$10,000 | Paid to the carrier or agent, usually through monthly premiums. |
| Dues, licenses and permits | $1,000-$4,095 | Paid as agencies and professional organizations require. The high end includes $495 for one Institute for Luxury Home Marketing membership when the Casan Collection Addendum applies. |
| Other pre-opening expenditures | $1,000-$5,000 | Attorney, accountant and other provider costs, paid as required. |
| Additional Funds | $5,000-$100,000 | Working capital and ongoing expenses before opening and during the first 3 to 6 months. |
Source: 2026 Franchise Disclosure Document, Items 5 and 7, pp. 14 and 30-32.
Additional Funds are already inside the total investment. Adding another $5,000 to $100,000 on top of the official Item 7 total would double-count this category. The FDD also says the estimate does not guarantee that cash needs will end after the initial 3 to 6 months.
NextHome requires franchisees to use its transaction-management and accounting software. Except for the disclosed technology charge, the 2026 FDD says there is no separate initial or ongoing software access fee. Products bearing the NextHome marks, including signs, stationery, wallpaper and business cards, must be purchased from designated suppliers. Source: 2026 FDD, Item 8, pp. 32-36.
Why is the opening-cost range so wide?
The spread is mainly a premises-and-starting-condition issue, not evidence that one endpoint is more typical. The disclosure covers a home-based administrative setup, an existing brokerage conversion, and a newly established office that may need substantial construction and furnishing. It also allows a broad reserve for the first operating months.
A physical office can occupy roughly 500 to 3,000 square feet, while a home office is permitted only when clients do not visit it. The rent line includes one month before opening, not the full rent obligation over the agreement term. Landlord pass-throughs may also include taxes, common-area maintenance, heating and cooling, janitorial service and similar charges, so the stated per-square-foot rent does not resolve the complete occupancy bill.
The starting condition of the premises changes several rows at once. An established brokerage may already have a lease, furniture, computers, signage infrastructure and operating licenses. A new location may need design work, code compliance, contractor labor, deposits and a complete furniture package. The disclosure therefore expects conversions to lean toward the lower end of the buildout and deposit estimates, while new offices may lean toward the higher end. It does not publish a midpoint or identify either end as a normal budget.
Training is another conditional driver. Initial orientation is normally remote and has no separate orientation charge. In-person delivery is available only by agreement and can add consulting, travel, lodging, meal and incidental expenses for both the training team and the attendees. A buyer who expects remote delivery should not treat the upper training amount as automatic, while a buyer requesting on-site delivery should obtain a written schedule of who travels, how many days are planned and which expenses are reimbursable.
The reserve line is deliberately broad because payroll structure, occupancy, insurance, professional services and the pace of opening differ by office. It covers the period before opening and the first three to six months, but the disclosure does not promise that the high end will be sufficient or that all cash needs end after that period. It also does not state whether owner compensation is included. Those questions belong in the buyer's written budget and should be reconciled with the proposed lease, staffing plan and billing start date.
Do not create a midpoint by averaging the two endpoints or by combining the lowest value from every row. Use the official total as the disclosed boundary, then replace each uncertain line with a local quote or a written assumption while preserving the reserve already included in the total.
When does the money have to be paid?
The capital requirement is staged rather than paid as one lump sum. The only large fixed payment due directly at contract signing is the applicable entry fee; premises, insurance, equipment and working-capital payments follow their own vendor or operating schedules.
Sign the Franchise Agreement. Pay $5,000 for a one-year Standard Model term, $10,000 for a five-year Standard Model term, or $15,000 for a five-year Large Office Model term. These fees are uniform and nonrefundable, subject to any State-Specific Addendum.
Secure and prepare the office. Rent is monthly; deposits, construction, equipment, furniture, signs and supplies are paid when landlords, contractors and suppliers require them. A home office is allowed, but clients may not visit it.
Complete pre-opening requirements. Insurance, licenses, permits and professional expenses are due on provider schedules. Remote orientation normally avoids orientation expenses; approved in-person training creates consulting and travel costs.
Reach the Start Date. The annual Disaster Relief Contribution is due on the Start Date. Monthly Base Franchise Fees, applicable monthly royalty components and invoiced Technology Fees then follow the Item 6 billing cycle.
Fund the initial operating period. The $5,000 to $100,000 Additional Funds category covers the period before opening and the first 3 to 6 months. Large Office operators must also track the $108,000 Minimum Annual Fees test across the Primary Location and Branch Offices.
Additional-office contract payments: an approved Branch Office requires its own agreement and currently carries a $3,000 entry fee under the Standard format or $1,000 under the Large Office format. Its term must match the existing agreement. A one-year Standard operator that converts to a five-year term pays the then-current five-year entry fee less the amount already paid; at the disclosed rates, that difference is $5,000.
Sources: 2026 Franchise Disclosure Document, Item 5, pp. 13-14, and Item 7, pp. 30-32.
How to turn the disclosure into a payment calendar
First separate amounts that become committed at signing from amounts controlled by third-party contracts. The signing-date payment is straightforward, but a lease can create deposits, advance rent and continuing obligations before construction is finished. Contractor and supplier agreements can also require deposits or progress payments that are not refundable on the same terms as the franchise contract. The practical question is therefore not only how much each line may cost, but the earliest date the cash can no longer be recovered.
Next separate opening purchases from bills that begin on the operating date. Furniture, signage and professional setup are generally paid once, although replacements may be needed later. Monthly charges, transaction charges, insurance premiums, occupancy costs and local service bills continue after the doors open. A schedule that places every amount into only one of those two groups helps prevent a one-time purchase from being treated as recurring, or a recurring bill from disappearing after the opening budget is spent.
Then preserve the operating reserve as a time-based buffer rather than treating it as an equipment allowance. It is intended to absorb ordinary expenses while the office is being established, but it is not a guarantee that the stated period will be sufficient. A useful internal schedule should show the opening date, the first invoice date for each recurring obligation, any annual anniversary charge, and the month when a shortfall calculation could become due. This produces a cash calendar without inventing a sales forecast or converting transaction-based charges into unsupported annual totals.
Finally, keep financing on a separate worksheet. Loan proceeds may change the source of cash, but they do not change the cost of the underlying lease, buildout, supplies or reserve. Interest, security documents, guarantees and repayment dates create additional obligations that should be tracked beside, rather than netted against, the opening-cost range. This separation is especially important when a lender funds only selected conversion expenses or when a landlord contribution is paid after work is completed.
The 2026 Item 7 table makes no allowance for principal or interest due before opening. It also leaves vendor refundability to the individual vendor contracts. A buyer should therefore separate the FDD's operating-cost range from any debt-service schedule and from nonrefundable landlord or supplier commitments.
What fees continue after a NextHome office opens?
Every office pays a $125 monthly Base Franchise Fee, plus the royalty and Technology Fee structure applicable to its model, term, team status and technology plan. NextHome does not disclose a percentage-of-gross-sales royalty. Its principal recurring charges are fixed monthly amounts and transaction-based amounts.
Standard Model royalty options
The standard format lets covered associates or teams use either fixed monthly pricing or a transaction-based schedule, subject to the designation rules in the disclosure.
| Standard Model option | Monthly portion | Transaction portion |
|---|---|---|
| Non-Team Flat Fee, one-year term | $210 per Non-Team Member | None |
| Non-Team Flat Fee, five-year term | $200 per Non-Team Member | None |
| Non-Team Transaction Fee, one-year term | None | $485 per closing |
| Non-Team Transaction Fee, five-year term | None | $395 per closing |
| Team Flat Fee, one-year term | $200 leader; $120 other member | None |
| Team Flat Fee, five-year term | $175 leader; $100 other member | None |
| Team Transaction Fee, one-year term | $200 per Team Leader | $485 per closing involving the Team |
| Team Transaction Fee, five-year term | $175 per Team Leader | $395 per closing involving the Team |
Source: 2026 Franchise Disclosure Document, Item 6, pp. 15-18.
Under the standard format, at least one Non-Team Member must use the Flat Fee Non-Team Royalty when the office has Non-Team Members. Royalty designations generally cannot be changed for at least six months. Monthly flat amounts are not prorated when covered associates or teams join or leave during a month.
Large Office Model royalty options
The larger format combines a monthly amount with a closing-based amount for each covered person, with pricing determined by team status and the selected technology plan.
| Large Office option | Monthly portion | Transaction portion |
|---|---|---|
| Full-Tech Non-Team Member | $50 per member | $419 per closing involving the member |
| Lite-Tech Non-Team Member | $25 per member | $279 per closing involving the member |
| Full-Tech Team Member | $125 leader; $50 other member | $419 per closing involving the member |
| Lite-Tech Team Member | $125 leader; $25 other member | $279 per closing involving the member |
Source: 2026 Franchise Disclosure Document, Item 6, pp. 16 and 18.
The official larger-office format announcement describes the Full Tech Stack and Lite Tech Stack as two technology paths under a five-year agreement. The FDD controls the fee amounts and conditions.
All four columns use the same basis: dollars charged for each side of a transaction closed by the office.
one-year
five-year
Full-Tech
Lite-Tech
Interpretation: the Technology Fee varies by Standard Model term or Large Office technology plan. Applicable sales or similar tax is added; the FDD states a current tax range of 4.5% to 11%. Large Office Technology Fees are also subject to Fee Caps and Minimum Annual Fees. Source: 2026 FDD, Item 6, pp. 18-19.
The Large Office Model has a separate annual cost contract
The opening range alone does not show the main financial difference. To qualify, an operator must use five-year agreements, maintain at least 150 Licensed Associates in aggregate across all Large Office Model locations, and place all offices controlled by the operator or Controlled Affiliates under the Large Office Model.
The caps do not eliminate the $108,000 minimum. If total covered fees fall below the minimum, the shortfall is due in the first month of the next Fee Year. Payments above the minimum do not carry forward. Source: 2026 FDD, Item 6, pp. 27-29. Two married Team Members who filed a joint federal return for the prior year are treated as one Team Member for a single combined $2,500 cap. If the primary agreement ends before a Fee Year closes and no branch qualifies as the replacement primary location, the annual minimum is prorated through the termination date and any shortfall is due within 15 days.
Format-specific transaction schedule: For qualifying standard format conversions, renewals or transfers with at least 12 months of prior operations and an average property sales price of $250,000 or less, the transaction royalty uses a property-price schedule: $335 for a one-year term or $245 for a five-year term on properties priced from $100,000 to $250,000; and $35 for a one-year term or $45 for a five-year term on properties priced at $99,999 or less. Properties above $250,000 retain the $485 or $395 amount. Source: 2026 FDD, Item 6, pp. 15-18.
The 2026 FDD discloses no formal system advertising program, no regional advertising cooperatives and no recurring advertising-fund percentage. Franchisees remain responsible for their own approved advertising and promotion, but Item 11 does not state a minimum local advertising spend. Source: Item 6, p. 24, and Item 11, pp. 41-42.
Which fees apply only when a specific event occurs?
Beyond the recurring base monthly charge, royalty and technology charge, Item 6 contains lifecycle, administrative and default-related charges. These amounts should not be added to the opening total unless the triggering event is expected during the startup period.
Disaster Relief Contribution: $299 per year for 1-25 Staff Members, $499 for 26-75, or $899 for 76 or more; due on the Start Date and each anniversary.
Renewal Fee: $5,000 for a Primary Location, $3,000 for a Standard Model Branch Office, and $1,000 for a Large Office Model Branch Office; due when the renewal agreement is signed.
Transfer Fee: $5,000, structured as $500 with the review materials and $4,500 after consent. A separate $500 Administrative Fee applies to the transfer request. The one-year agreement is generally not transferable unless applicable law requires otherwise.
Administrative Fee: $500 for a business-name change, relocation, Principal Broker change, transfer, Branch Office closure, New Development Office action, or another amendment to the Franchise Agreement.
Training, consulting and events: requested or default-curing training can require reimbursement of out-of-pocket costs and a $250 hourly consulting charge. Optional ongoing training currently has no separate fee, although attendee costs and any agreed on-site travel remain the franchisee's responsibility. Meeting or conference registration can be up to $899 per attendee if held, plus travel. If a meeting or conference is held and nobody attends, the agreement can still require payment of one registration charge.
Audit, reporting and payment failures: actual audit expenses when underpayment is 3% or more or reporting caused the audit; interest of 1.5% per month or the lawful maximum; $50 monthly late-payment or reporting deficiency fees; $100 monthly for each unreported Licensed Associate; and $50 or actual expense, whichever is more, for a declined payment.
Supplier, insurance and MLS charges: actual supplier-review costs, insurance premium plus a reasonable procurement fee if required coverage lapses, business-card costs when an associate fails to order timely, and local MLS pass-through charges that may exceed NextHome's actual MLS cost by up to 20%. The supplier-review charge cannot exceed the franchisor’s or affiliate’s actual review cost.
Payment method and card costs: credit-card processing is currently 3% as incurred. A declined payment costs $50 or the actual expense, whichever is greater, in addition to applicable late charges.
Optional products, services and support: offerings from named affiliates are priced at then-current rates disclosed before purchase. They are currently optional, although the disclosure reserves the right to make selected offerings mandatory after written notice.
Enforcement and claim costs: attorneys’ fees, enforcement expenses and indemnification obligations vary with the circumstances and can become payable when the agreement is enforced, a covered claim arises, or the operator breaches an obligation.
Liquidated Damages: before the Start Date, $4,020 for a one-year Standard agreement, $19,500 for a five-year Standard agreement, or $108,000 for the Large Office Model; after the Start Date, the formula uses average recurring monthly fees and charges multiplied by the months remaining. A qualifying Branch Office termination made on 90 days’ notice is excluded from this charge when the stated primary-location conditions are met.
Source: 2026 Franchise Disclosure Document, Item 6, pp. 19-24 and 28-29.
A one-year agreement may renew for one or five years, while a five-year agreement may renew only for another five-year term. Renewal may also require office modernization. Item 17 does not place a dollar amount on that obligation; it says modernization is required when renewing for five years or when the office has been open for at least five years. The renewal agreement may also contain higher royalty, technology charge and other charges than the expiring contract. Source: 2026 FDD, Item 17, pp. 55-56.
Does NextHome disclose a liquid-capital or net-worth minimum?
No fixed dollar minimum for Liquid Capital or Net Worth appears in the 2026 FDD or on the reviewed official franchise pages. That means the Item 7 total should not be described as a liquidity threshold. The official application process does, however, require financial documentation, and the larger-office format may apply additional then-current financial criteria.
- Liquid Assets documentation
- The official application page requests bank checking and savings accounts, business accounts, Treasury instruments, money-market accounts, certificates of deposit, HELOC availability or cash equivalents, dated within the last 30 days.
- Non-Liquid Assets documentation
- The application identifies real-estate holdings, retirement accounts and investment accounts as acceptable supporting records.
- Large Office qualification
- The FDD requires at least 150 Licensed Associates in aggregate and compliance with then-current financial, operational and experience criteria, without publishing a numeric financial threshold.
- Personal Guarantee
- The purchasing franchisee must be a business entity. Every 5% Owner must jointly and severally guarantee payment and performance, and a spouse who is not already a signatory must sign the Consent of Spouse. Conversion notes also require owner guarantees and a security interest.
How to interpret the absence of a published threshold
A missing dollar minimum is not the same as automatic approval. It means the reviewed disclosure and public application do not provide a single figure that every applicant must meet. The company can still evaluate whether the proposed entity has enough readily available cash, acceptable credit, adequate reserves and suitable financial responsibility for the chosen office structure.
Readily available assets and total personal wealth answer different questions. Cash, bank balances and near-cash instruments may show whether upcoming payments can be made on schedule. Property, retirement balances and other holdings may support overall financial strength but may not be available quickly without a sale, loan, tax consequence or withdrawal restriction. A personal guarantee can also expose assets without turning them into funding for opening expenses.
The practical review should therefore focus on documentation and timing. Confirm which records are acceptable, how recent they must be, whether borrowed funds are permitted, which owners and spouses must execute the required guarantees, and whether any amount must remain unencumbered after the office opens. Those questions should be answered in writing for the applicant's exact ownership structure rather than inferred from the low end of the investment table.
For a buyer comparing a conversion with a new office, the underwriting discussion should also reflect what is already owned or contractually committed. Existing furniture, technology and a continuing lease may reduce new purchases, but they do not necessarily create cash that can pay future invoices. Conversely, a landlord allowance may reduce the net buildout burden while still requiring the tenant to fund work before reimbursement. The funding plan should record both the gross obligation and the date any credit is expected.
The official franchise application and document checklist explains the current documentation categories but does not publish an approval threshold. A buyer should request the current underwriting criteria in writing rather than substituting the total investment range for a cash requirement.
Does NextHome offer financing?
Item 10 describes possible financing only for an existing brokerage converting from another brand. It is not a general promise to finance the Item 7 investment, and approval depends on financial need, credit history, Net Worth, business goals and local growth potential.
Item 7 says the franchisor does not finance the costs listed in the opening-investment table, while Item 10 separately permits financing for conversion-related rebranding, reopening, marketing and operations. Item 5 describes one- and five-year franchise terms, but Item 10 refers to financing tied to 7.5- or 10-year Franchise Agreements. Those scopes and term descriptions do not fully reconcile on their face; a conversion applicant should obtain the exact proposed agreement and promissory note before relying on the financing schedule.
When offered, the financing is a secured promissory note for as much as the approved projected conversion budget, with interest at 10% per year. The FDD describes 7.5-year and 10-year notes and says financing is not offered with Franchise Agreements shorter than 7.5 years. A 7.5-year note has no payment due in year one, followed by monthly principal and accrued interest over the remaining 6.5 years. A 10-year note can include annual forgiveness equal to one-ninth of outstanding principal only if the franchisee is not in default and satisfies an agreed minimum royalty condition; accrued interest and any remaining principal are due at maturity. Owners must personally guarantee the note, and the franchisor takes a security interest in business assets. Source: 2026 FDD, Item 10, pp. 38-39. Repayment amounts under any promissory note vary with principal and term and are governed by the signed note; the other-fees table lists those repayments as a separate monthly obligation when conversion financing is used.
What should be confirmed before signing?
The correct capital plan depends on the exact model, term, office condition, associate structure and technology plan written into the proposed agreements. The following checks prevent the most common cost misreadings.
The capital decision: the verified 2026 opening range is $16,750 to $236,595 for the standard format and $26,750 to $241,595 for the larger-office format. The largest unresolved variables are the office premises, leasehold work and the $5,000 to $100,000 operating reserve allowance. The most important format distinction appears after opening: standard format fees vary by term and team structure, while the larger-office format combines Full-Tech or Lite-Tech charges with agent-level Fee Caps and a $108,000 annual minimum obligation.