Build Your Business
Building The American Dream, One Home at a Time The American Dream is rooted in the belief that each one of us has the ability to attain prosperity and success, achieved through self-sacrifice, lots of hard work and a degree of risk taking.
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This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. Minnesota advertising filing #F-8622.
Thank you for your interest in an AR Homes® franchise. I grew up in Clearwater, Florida, the same town where Art Rutenberg founded his first homebuilding company back in 1953. Since our families lived nearby, I was fortunate to get to know Art. My career in homebuilding started 25 years ago in Miami, Florida, and on occasion, when I was visiting family, I would see Art and his wife Jane at Lenny’s deli on Sunday mornings. We always took a moment to talk shop. Since Art was an industry giant I was flattered when he asked me to expand his company into the Carolinas back in 2008. As we expanded geographically, so did our dedication to deliver the finest home designs and services available to custom homebuilders. I experienced this first hand as a franchisee when I partnered with a local Charlotte, NC builder, and helped build a market-leading franchise that continues today. It is an honor for me to lead AR Homes® today, and continue Art’s legacy. We remain committed to innovation and leadership while maintaining the same values that Art instilled in the company so many years ago.
Art Rutenberg, 1964.
At AR Homes®, we are passionate about helping our franchises achieve their potential. We provide robust services that are typically well beyond what a local builder can achieve on their own. In fact, we’ve been told our systems and services are often better than those of larger national production builders. This simply means that our franchise builders have access to the tools they need to better compete and grow. It was Art’s dream to build a national network of high quality franchises, and we will achieve this goal by attracting exceptional business professionals and executives committed to building market leading companies. If this is something that appeals to you, then we invite you to learn more about the AR Homes® franchise.
Jim Rosewater
Clearwater Office, circa 1957.
CHIEF EXECUTIVE OFFICER
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U.S. Homebuilding – The American Dream * is Alive and Well
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Single-family homebuilding is a 95-billion-dollar industry which has sustained continual growth since 2011**.
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Custom homebuilders make up almost 20% of the industry which average 19 billion dollars in annual revenue†.
• Industry growth is projected to continue in the next 5 years.* •
As of 2020, there are approximately 346,306 Homebuilder businesses in the United States, AR Homes® is ranked in the top 1% based on annual revenue and closings††.
• Revenue for the homebuilding industry has seen 0.9% per year average growth from 2015 – 2020.*
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* IBIS World Market Research - Homes Builder’s Reports 2020. **Eye On Housing, January 2020. † Census Bureau’s Survey of Construction. †† Builder’s annual “Top 200” List and Pro Builder’s annual “Housing Giants List”. **Eye On Housing, January 2020.
AR Homes® has been recognized by
magazine as one of the Top 150* U.S. Homebuilders from 2004 to 2020 and the only ranked Custom Homebuilding Franchise Opportunity
and
Ranks AR Homes® 54th in 2020 National U.S. Housing Giants
*Builder’s annual list looks at at the top 200 homebuilders across the United States, ranked by closings.
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Minnesota
Minneapolis
Wisconsin Michigan Milwaukee Detroit Chicago Schererville
Indiana
Ohio
Illinois
Wilmington
Columbus Indianapolis
Morgantown
Cincinnati
Kansas City
Louisville
Virginia
Charleston
Kentucky
Nashville
Tennessee
Memphis
Chattanooga
Dover
Delaware Maryland
Northern Virginia
West Virginia
St. Louis
Missouri
Washington D.C.
Annapolis
Richmond
Gaithersburg
Raleigh
Knoxville Asheville
Charlotte
North Carolina
Greenville
South Carolina
Gainesville Atlanta Birmingham
Dallas
Jackson
Shreveport
Texas
Alabama
Wilmington Myrtle Beach
Lake Oconee
Charleston
Georgia
Bluffton
Mississippi Baton Rouge
Louisiana
Austin San Antonio
Houston
Hattiesburg Panama City New Orleans
Jacksonville
Florida Gainesville Ocala
Melbourne
Franchise Territories New and Expanding Markets
Orlando Jupiter
Tampa Bay Sarasota Fort Myers Naples
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AR HOMES FRANCHISING ®
Palm Beach
Existing Franchise Locations*
*As of March 9, 2021.
AR Homes® at a Glance* • Founded in 1953 by Arthur Rutenberg, Franchising since 1978 • Total Operating Franchises: 42 and growing • Manager Run and Operated: 12 or 28% • Absentee Owner: 9 or 20% • Average Size of Model Home: 4,000 sq/ft • Estimated Start Up Costs: $360,000 to $637,000 • Franchise Fee: $50,000 • Royalty Fee: 2% to 4.25% • Territories: Areas within 19 states • Minimum of $240,000 to $500,000 non-borrowed liquidity • Net worth of $2MM • Requirements can be cumulative amongst partners
*As of March 9, 2021.
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Support That Sets Us Apart
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ARCHITECTURAL DESIGN
BACK OFFICE SUPPORT
AR Homes® is at the forefront of architectural design technology. Our dedicated team of designers use powerful 3D software to produce plans buyers can experience virtually before construction begins, including 3D lot fits, walkthroughs and more.
With growth comes the need for help – and that’s a good thing. The AR Homes® team stands by your side with rock-solid support. Our trained personnel are available to help and can even augment your staff as you grow. Fee-based services include purchasing, estimating, and accounting, and you’ll continuously benefit from the relationship with our executive team. When you grow, we’ve got your back.
ONLINE BUSINESS LIBRARY
MARKETING & ADVERTISING In addition to ARIS, we provide an extensive online library of business forms, documents and operations manuals. These documents provide you with what you need to quickly and effectively operate and manage your business.
PREFERRED PARTNER & SMART BID We enjoy long-standing relationships with the industry’s leading brands and suppliers. By leveraging our size, we have buying power resulting in product discounts and model home incentives, giving you another edge over other independent builders. Additionally, our proprietary cost-comparison system and bid request process improve buying decisions because it helps you know what to pay.
The prestige & credibility of our brand is instantly yours in print, email, social media, a robust website, and our award winning AR Living® magazine. This is a level of professionalism that small homebuilding companies – and even large ones – simply can’t match.
PROFESSIONAL TRAINING As a franchise owner, you and your staff will receive tailored, on-site instructions as well as training at our classrooms in Florida and North Carolina. From sales and quoting to purchasing and construction scheduling, our team is here to help you learn and succeed quickly.
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National Avid Ratings Survey of Homeowners 96.7 Other US Builders
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100
How AR Homes® Measures Up
92.6
92.1 90
90
85
87.1
75 70 65 40
45
50
55
60
Average Rating
80
85
Quality of Home
Total Buying Experience
Builder Performance 10
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Conf idence in Builder *Results based on 2019 Year End Customer Survey of all U.S. Builders using Avid Ratings.
A One-of-a-Kind Business Model
While there are both talented local custom homebuilders, and massive enterprise production homebuilders with significant economies of scale, there are no U.S. homebuilders that combine the advantages of a large-scale homebuilding network with the ability to deliver a truly custom luxury home in a local geography of your choice.
More importantly, there is no other franchise investment opportunity like it in the world today.
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Is an AR Homes® Franchise Right For You?
“AR Homes® has the best system we’ve ever seen. The brand’s technology and support allows for seamless navigation through every step of the build process, including design, sales and warranty. Plus, the collaboration between the 40+ building companies has been priceless. We feel like we’re never alone in our business, and can always reach out to our fellow builders for insight and support”. – Doug and Deb Durrant, Franchise Owners
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While local custom homebuilders have found AR Homes® an amazing franchise investment opportunity for the last 40 years, becoming an AR Homes® Franchisee does not require direct homebuilding experience. For current homebuilders, our franchise model is designed to streamline your business and achieve a new level of growth. For the more traditional franchise investor, AR Homes® provides a truly stand-alone investment opportunity that can be lead by an experienced building executive – who we’ll work with you to select. So whether you’re looking for a unique franchise investment opportunity, have an interest in designing, building and selling luxury homes, or have a background in homebuilding, AR Homes® is the right investment opportunity for you.
SINGLE FRANCHISE INVESTOR
DEVELOPER
AR Homes® is a one-of-a-kind franchise investment opportunity with a strong performance history and track record of success in a growing industry.
Maximize the value of your community investment, as well as your invaluable local market experience, through the AR Homes® franchise investment opportunity.
MULTI-UNIT FRANCHISE INVESTOR
CUSTOM BUILDER
For those whose primary interest is a multi-unit franchise investment opportunity with the ability to expand earnings exponentially through economies of scale, AR Homes® represents an opportunity for regional and national growth.
For current Homebuilders who wish to bring their operation to the next level, AR Homes® allows you to streamline your business systems and software, promote a new level of growth, and reap the benefits of large company resources while operating with the same autonomy
HOMEBUILDING EXECUTIVE If you have a background in the home building industry, AR Homes® is a franchise investment opportunity that will allow you to leverage your expertise to be in business for yourself, not by yourself.
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Built on Financially Solid Ground
In an industry dominated by larger production builders since the 1960s, Art Rutenberg was on the side of the independent builder. He spent a lifetime honing systems and processes to provide AR Homes®’ builders with the big company resources and tools they could never afford on their own. Today, as the largest network of independently owned and operated franchise custom homebuilders in the U.S, AR Homes® continues to provide our franchisees with the most advanced resources and tools designed to foster revenue and growth, as well as elevate and differentiate the brand in your specific marketplace.
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OUR FRANCHISES BY THE NUMBERS
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$11,083,322
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AVERAGE CLOSING REVENUE
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$2,181,973
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AVERAGE GROSS PROFIT/ 19.7% OF CLOSING REVENUE
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$532,150
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AVERAGE ADJUSTED NET INCOME/ 4.8% OF CLOSING REVENUE 1. As reported in our Franchise Disclosure Document issued December 28, 2020. The results are based on the results of the 27 of our 33 franchisees that have been open at least 3 years based on 2019 annual results. 2. 11 of 27 or 41% equaled or exceeded the average. 3. 9 of 27 or 33% equaled or exceeded the average. 4. 9 of 27 or 33% equaled or exceeded the average. Disclaimer: Some franchises have sold and earned these amounts. There is no assurance, however, that you will do as well.
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The AR Homes® Difference For more than 40 years our franchisees have enjoyed the advantages of best-in-class business intel, strategy, resources, and proprietary tools, including the Arthur Rutenberg Information System (ARIS), the industry-leading enterprise software that ties your entire business together.
“After 4 years in the franchise, it’s one of the best decisions we ever made. The training and support is second to none and, of course, the custom design department is directly attributable to our sales success.” – Jim Sanders, Franchise Owner
“I have better relationships with bankers, developers, realtors, and prospective buyers than if I had done this by myself.” – Jeff Logsdon, Franchise Owner
“Our customers get the benefits of a local custom homebuilding company, while we operate with systems and resources that are better than large national builders. I know this because I was an executive for one of those companies” – Mitch Genda, Franchise Owner
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It Starts With a Plan, Hundreds Of Them DOZENS OF NEW PLANS EACH YEAR GIVES YOU ACCESS TO AN EVER-EVOLVING PORTFOLIO OF LUXURY HOME PLANS
The obvious attraction to AR Homes® are the homes themselves. Design is a cornerstone of our business and as industry innovators our design team is continually creating progressive one-of-kind plans. Access to high-quality home plans, often a shortcoming for small custom builders, will instantly become a strength as a franchise owner. Our plan collections include designs for specific geographic markets and architectural styles. These include home designs ranging from 1,900 sq. ft. to over 7,200 sq. ft. with hundreds of elevations and garage configurations. Any of our plans can be personalized for customers within 5 business days thanks to our dedicated design team, whose sole purpose is to help you sell a custom home. No one understands the dynamics of the local market better than our Franchisees. As AR Homes® continues to expand geographically, we’re guided by our Franchisees’ local expertise in the development of plans designed specifically for their markets and unique target audiences.
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Our Model Home Strategy: Experiencing is Believing
You can have the website, home plans and beautiful photography, but nothing compares to seeing, feeling, and experiencing one of our homes in person. Every franchise operates at least one furnished model home, while some operate several. Each is professionally furnished and staffed with a highly-trained team, well-versed in our collection of plans – the industry’s best. These assets, coupled with our ability to rapidly customize and price homes, are at a level well beyond the industry norm. Today’s consumers demand information quickly, and our builders deliver. Decades of crafting spectacular model homes has earned us an unequaled reputation. AR Homes®’ luxury model homes are the unique factor that can spark buyers and realtors into action and for that reason we promote the locations of all of our Franchisee’s model homes through our award-winning AR Living® magazine, social media, and website.
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WHO WE REACH Our model home network caters to discerning families, empty nesters, retirees, and single professionals who desire an unmatched custom home value. We also reach Baby Boomers, a quarter of the U.S. population who are nearing their peak years for a second home purchase.
A BUSINESS MODEL DESIGNED FOR SUCCESS • Differentiates our quality & service from the competition. • Generates “pre-sales” – a business model for reduced risk. • Demonstrates our exceptional craftsmanship. • Encourages realtors to bring customers, making their job easier. • Entices public interest and walk-in traffic. • Introduces customers to our plans. • Creates an environment for selling and demonstrating our all-inclusive pricing.
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There is true artistry in our homes, but there’s pure science and technology in the systems we use to make it all happen.
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The Best Tools and Technology ARIS AND MORE
Our Arthur Rutenberg Information System, better known as ARIS, is the industry-leading enterprise software that ties your entire business together. ARIS is a fully-integrated system that provides smooth communication with trades and clients during construction, serves as a customer database during warranty and beyond, and provides fully integrated controls and information to effectively manage your business. This proprietary, cloud-based software provides a major operational advantage over the competition. It is used by all AR Homes® franchisees to effectively manage their businesses. This indispensable tool supports sales and customer relationship management, budgeting and estimating, business planning, scheduling, accounting, warranty, and much more.
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Frequently Asked Questions Q: How much does it cost to become an AR Homes® franchisee? A: The initial Franchise Fee is $50,000. Continuing Royalty Fees range from 2% to 4.25% of the selling price of homes or home and lot packages sold to buyers. Q: Is there a requirement that all franchises must build and operate a model home? A: Yes all franchisees must own and operate at least one model home. Many franchisees have multiple models. One of the major benefits of our system is that each franchisee can use other franchisees’ model homes to help their sales process. Q: Do you help identify the best location for my model home? A: Absolutely. Our field team of knowledgeable experts in operations, sales, marketing and design will assist you in identifying the optimum location for your initial, as well as all future model homes.
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Q: Does AR Homes® assist in the design and opening of my model home? A: Our model design process is vigorous and exacting. AR Homes® has one of the largest and most talented residential architectural and interior design teams in the country with over 50 people on staff in Clearwater, FL and Charlotte, NC to serve our franchisees. Q: Will AR Homes® help with the model home financing process? A: Yes we are continually shopping and negotiating model financing programs from banks, mortgage companies and private equity companies to serve the needs of our franchisees. Q: What is the availability of an AR franchise in my area? A: We are currently offering franchise territories in 19 states. We will help to determine if an AR franchise could be successful in your area.
Q: Do you offer training for both me and my employees? A: We offer a full range of training for each of the Job Descriptions of personnel in your building company. These programs are provided by our trainers via video programs, virtual webinars, group meetings, as well as, in person visits to your office. Q: Do I need to have prior experience in home building or home design? A: The majority of our franchisees are owners of small to medium sized custom building companies or former executives of regional or national large builders. Some of these franchisees are not involved in the day to day operations of their companies and hire an experienced manager as a Building Company President. If you wish to invest in a franchise and have no homebuilding experience, we will help you select an experienced manager to run the day to day operation of the franchise.
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Our Mission Bring inspiration, innovation, and unparalleled service to the custom homebuilding industry to improve the lives of our franchisees and their customers.
AR HOMES® LEADERSHIP TEAM
Jim Rosewater
Don Whetro
Chad Tippin
Tammie Kennedy
CHIEF EXECUTIVE OFFICER
CHIEF OPERATIONS OFFICER
CHIEF TECHNOLOGY OFFICER
FRANCHISE
FRANCHISE
DEVELOPMENT DIRECTOR
DEVELOPMENT DIRECTOR
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Maryanne Hourihan
Mitzi Hatori
Mario Vitorino
David Barin
Andrew McCoy
VICE PRESIDENT OF MARKETING
DIRECTOR OF DESIGN
FLORIDA GROUP VICE PRESIDENT
SOUTHERN GROUP VICE PRESIDENT
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AR Homes® is the largest network of independently owned and operated franchise builders in the nation. AR Franchising, Inc. 13922 58th St N, Clearwater, FL 33760
For more information, please contact: TAMMIE KENNEDY | FR ANCHISE DE VELOPMENT DIREC TOR – NORTH 727.536.5900 ext. 316 | TKennedy@ARHomes.com MARYANNE HOURIHAN | FR ANCHISE DEVELOPMENT DIREC TOR – SOUTH 727.536.5900 ext. 359 | MHourihan@ARHomes.com
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. If you are a resident of a U.S. state or a country that regulates the offer and sale of franchises, are receiving this message in one of those states or countries, or intend to operate a franchise in any of those states or countries, we will not offer you a franchise unless and until we have complied with any applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction. This offering is not an offering of a franchise. In New York (USA), an offering of a franchise can only be made by a prospectus that has been previously filed and registered with the Department of Law of the State of New York. The application for registration of an offering prospectus or the acceptance and filing thereof by the Department of Law as required by the New York law does not constitute approval of the offering or the sale of such franchise by the Department of Law or the attorney general of New York. Minnesota AIN#F-8622