In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a HouseMaster Home Inspections franchise, based on Item 7 of the company’s 2022 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a HouseMaster Home Inspections franchise, based on Items 5 and 6 of the company’s 2022 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned HouseMaster Home Inspections outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD
Section IV – News updates on the HouseMaster Home Inspections franchise opportunity
Section V – Presentation and analysis of HouseMaster Home Inspections’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:
- 2021 average, median, highest, and lowest gross sales for the (i) 74 HouseMaster franchisees operating a single franchised business; (ii) 27 HouseMaster franchisees operating two franchised businesses; (iii) 10 HouseMaster franchisees operating three franchised businesses; (iv) 6 HouseMaster franchisees operating four franchised businesses; and (v) 6 HouseMaster franchisees operating five to eight franchised businesses (collectively, the “Reporting Franchisees”), operating a total of 237 franchised businesses
Section VI – Key ratios, comparables, computations, and analyses for the HouseMaster Home Inspections franchise opportunity (exclusive content for Platinum subscribers)
Section I – HouseMaster Home Inspections Franchise Costs
- HouseMaster Home Inspections franchise costs, based on Item 7 of the company’s 2022 FDD:
- Initial Franchise Fee: $42,500
- Training Expenses: $500 to $3,000
- Licensing Compliance Costs: $0 to $15,000
- Marketing Materials and Supplies: $3,000 to $6,000
- Office Equipment, Furniture: $0 to $2,000
- Computer System: $150 to $4,850
- Rent: $0 to $750
- Prepaid Expenses: $250 to $750
- Insurance: $4,000 to $9,000
- Professional Fees: $0 to $1,000
- Reunion Travel Expenses: $1,000 to $3,000
- Vehicle and Vehicle Branding: $2,700 to $5,800
- Grand Opening Promotion Expense: $1,000 to $3,000
- Additional Funds for 3 Months: $6,000 to $11,000
- Total Estimated HouseMaster Home Inspections Franchise Costs: $61,100 to $107,650
Section II – HouseMaster Home Inspections’ Initial Franchise Fee, Royalty Fee, and Marketing Fee
- HouseMaster Home Inspections’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:
- Initial Franchise Fee: $.57 per owner-occupied home located in your territory
- License Fee: 7.5% of first $125,000 in Gross Sales per year, 7% on Gross Sales of $125,001-$250,000, 6.5% on Gross Sales of $250,001-$500,000, 6% on Gross Sales of $500,001-$1,000,000, 5.5% on Gross Sales of $1,000,001-$1,500,000, and 5% on Gross Sales over $1,500,000, in each case other than “roll-in” sales. You must pay a minimum monthly License Fee for each territory.
- Marketing, Advertising, and Promotions (MAP) Fee: 2.5% of first $125,000 in Gross Sales per year, 2.25% on Gross Sales of $125,001-$250,000, and 2% on Gross Sales over $250,000
- Local Marketing Groups (LMG): not to exceed 3% of Gross Sales. As of the issuance date of the current Franchise Disclosure Document, HouseMaster may require that a portion of your LMG contribution (currently, 2% of your Gross Sales) be paid for use towards the Neighborly marketing and brand awareness initiatives.
Section III – Number of Franchised and Company-Owned HouseMaster Home Inspections Outlets
Franchised
2019
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 266
- Net Change: +7
2020
- Outlets at the Start of the Year: 266
- Outlets at the End of the Year: 271
- Net Change: +5
2021
- Outlets at the Start of the Year: 271
- Outlets at the End of the Year: 272
- Net Change: +1
Company-Owned
2019
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 6
- Net Change: 0
2020
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 6
- Net Change: 0
2021
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 0
- Net Change: -6
Section IV – News Updates on the HouseMaster Home Inspections Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the HouseMaster Home Inspections Franchise (Item 19, 2022 FDD)
- The sales figures listed below are average and median data derived from historical operating results of the HouseMaster franchised businesses indicated for the time period covered.
- HouseMaster obtained these sales figures from information provided to it by its franchisees for the period from January 1, 2021 through December 31, 2021 (the “2021 Reporting Period”).
- Neither HouseMaster nor its independent certified public accountants have audited or verified any of the sales figures reported to it. Franchisees are not required to use generally accepted accounting principles when reporting these figures.
- All of the businesses for which sales results are reported below were operated by franchisees. All of the franchised businesses are comparable to the franchised businesses offered by the disclosure document and offered substantially the same services to the public.
- As of December 31, 2021, there were 272 HouseMaster franchised businesses in operation in the United States. This Item 19 includes data from 237 businesses (operated by a total of 123 franchisees) which were all in operation and reporting sales for the entire 2021 Reporting Period (the “2021 Reporting Businesses”).
- The information excludes data from 14 franchised businesses (operated by a total of 7 franchisees) that opened during the year 2021 and therefore were not in operation for the entire 2021 Reporting Period. In addition, this Item 19 excludes data from 10 franchised businesses because they did not report data to HouseMaster for the entire 2021 Reporting Period.
- Also excluded from this Item 19 is data reported by 11 franchised businesses (operated by a total of 7 franchisees) that were granted exclusive territory rights (referred to as either a Limited Area Franchise Territory or a Reciprocal Opportunity Franchise Territory). HouseMaster no longer grants any exclusive territory rights.
- Thirteen franchised businesses closed in 2021 and therefore their data is also excluded from this Item 19. Of the 13 businesses that closed during the year 2021, zero businesses closed after being open for less than 12 months.
- Because HouseMaster franchisees have historically reported data to HouseMaster aggregated by franchisee (rather than by a franchised business) and a number of HouseMaster franchisees operate multiple HouseMaster franchised businesses, HouseMaster has separated the data reported in this Item 19 by the number of franchised businesses that the franchisees own – i.e., separately showing average and median data for franchisees that own one franchised business/unit, franchisees that own two franchised businesses/units, franchisees that own three franchised businesses/units, franchisees that own four franchised businesses/units, and franchisees that own five to eight franchised businesses.
- No adjustments, including adjustments for geographic location, have been made to these reported sales. This report does not include information about previous periods or any future periods.
- Also, because these are Gross Sales results only, no costs or expenses are taken into account.
- Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.
- “Gross Sales” means the total revenues and receipts from whatever source (whether in the form of cash, credit, agreement to pay, barter, trade, or other consideration) that arise, directly or indirectly, from the operation of – or in connection with – a HouseMaster Business whether under any of the Marks or otherwise.
- Gross Sales exclude sales taxes collected from customers and paid to the appropriate taxing authority and any other bona fide refunds, rebates, or discounts that HouseMaster authorizes in writing.
- Gross Sales also exclude sales from any Excluded Services (as defined in a mutually executed Excluded Services Addendum).
Average and Median Gross Sales for Franchised Businesses for the Period January 1, 2021 to December 31, 2021 (2021 Reporting Period)
- This table shows separately the average and median annual Gross Sales data for the 2021 Reporting Period for (i) 74 franchisees operating a single franchised business; (ii) 27 franchisees operating two franchised businesses; (iii) 10 franchisees operating three franchised businesses; (iv) 6 franchisees operating four franchised businesses; and (v) 6 franchisees operating five to eight franchised businesses (collectively, the “Reporting Franchisees”), operating a total of 237 franchised businesses.
Single-Unit Franchisees Group
- Number of Reporting Franchisees: 74
- Average Gross Sales: $180,497
- Number and Percentage of Franchisees That Achieved at Least the Average: 27 / 22%
- Actual Highest Gross Sales: $818,912
- Actual Lowest Gross Sales: $14,327
- Median Gross Sales: $145,841
2-Unit Franchisees Group
- Number of Reporting Franchisees: 27
- Average Gross Sales: $288,469
- Number and Percentage of Franchisees That Achieved at Least the Average: 14 / 52%
- Actual Highest Gross Sales: $840,023
- Actual Lowest Gross Sales: $54,441
- Median Gross Sales: $188,288
3-Unit Franchisees Group
- Number of Reporting Franchisees: 10
- Average Gross Sales: $703,571
- Number and Percentage of Franchisees That Achieved at Least the Average: 04 / 40%
- Actual Highest Gross Sales: $2,242,439
- Actual Lowest Gross Sales: $174,790
- Median Gross Sales: $548,540
4-Unit Franchisees Group
- Number of Reporting Franchisees: 6
- Average Gross Sales: $707,077
- Number and Percentage of Franchisees That Achieved at Least the Average: 03 / 50%
- Actual Highest Gross Sales: $1,049,309
- Actual Lowest Gross Sales: $111,750
- Median Gross Sales: $928,000
5 to 8-Unit Franchisees Group
- Number of Reporting Franchisees: 6
- Average Gross Sales: $618,523
- Number and Percentage of Franchisees That Achieved at Least the Average: 01 / 17%
- Actual Highest Gross Sales: $1,818,775
- Actual Lowest Gross Sales: $220,754
- Median Gross Sales: $430,600
All
- Number of Reporting Franchisees: 123
- Average Gross Sales: $293,779
- Number and Percentage of Franchisees That Achieved at Least the Average: 47 / 38%
- Actual Highest Gross Sales: $2,242,439
- Actual Lowest Gross Sales: $14,327
- Median Gross Sales: $187,953
Section VI – HouseMaster Home Inspections Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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