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 2024 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 2024 FDD
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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 2024 FDD, including information on the:
- 2023 average, median, highest, and lowest gross sales for the (i) 63 HouseMaster franchisees operating a single franchised business; (ii) 25 HouseMaster franchisees operating two franchised businesses; (iii) 12 HouseMaster franchisees operating three franchised businesses; (iv) 1 HouseMaster franchisee operating four franchised businesses; and (v) 7 HouseMaster franchisees operating five to eight franchised businesses, operating a total of 60 franchised businesses, which were all in operation and reporting sales for the entire 2023 Reporting Period
- 2023 average, median, highest, and lowest inspection fee for the (i) 63 HouseMaster franchisees operating a single franchised business; (ii) 25 HouseMaster franchisees operating two franchised businesses; (iii) 12 HouseMaster franchisees operating three franchised businesses; (iv) 1 HouseMaster franchisee operating four franchised businesses; and (v) 7 HouseMaster franchisees operating five to eight franchised businesses, operating a total of 60 franchised businesses, which were all in operation and reporting sales for the entire 2023 Reporting Period and used HouseMaster’s required inspection scheduling and reporting software during the Reporting Period
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 2024 FDD:
- Initial Franchise Fee: $42,500
- Training Expenses: $500 to $2,500
- Licensing Compliance Costs: $0 to $10,000
- Marketing Materials and Supplies: $1,000 to $2,000
- Office Equipment, Furniture: $0 to $1,500
- Computer System: $100 to $2,500
- 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: $3,000 to $5,700
- Starter Tool Kit: $475
- Additional Funds for 3 Months: $6,000 to $11,000
- Total Estimated HouseMaster Home Inspections Franchise Costs: $58,825 to $92,675
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 2024 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
2021
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- Outlets at the End of the Year: 272
- Net Change: +1
2022
- Outlets at the Start of the Year: 272
- Outlets at the End of the Year: 247
- Net Change: -25
2023
- Outlets at the Start of the Year: 247
- Outlets at the End of the Year: 242
- Net Change: -5
Company-Owned
2021
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 0
- Net Change: -6
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
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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.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
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, 2024 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, 2023 through December 31, 2023 (the “2023 Reporting Period”).
- 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, 2023, there were 242 HouseMaster franchised businesses in operation in the United States.
- Parts 1 and 2 of this Item 19 include data from 213 franchised businesses (operated by a total of 108 franchisees) which were all in operation and reporting sales for the entire 2023 Reporting Period (the “2023 Reporting Businesses”).
- Parts 1 and 2 exclude data from (a) 7 franchised businesses (operated by a total of 7 franchisees) that opened during the 2023 Reporting Period and therefore were not in operation for the entire 2023 Reporting Period, and (b) 22 franchised businesses (operated by a total of 21 franchisees), which were in operation during the 2023 Reporting Period but did not report the relevant data to HouseMaster for the entire 2023 Reporting Period.
- Twenty franchised businesses closed in 2023 and therefore their data is also excluded from this Item 19. Of the 20 businesses that closed during the year 2023, no business closed after being open for less than 12 months.
- Because HouseMaster franchisees have historically reported data to HouseMaster aggregated by franchisee (rather than by 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.
- 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).
Part 1 – Report on Average and Median Gross Sales for Franchised Businesses for the Period January 1, 2023 to December 31, 2023 (2023 Reporting Period)
- This table shows separately the average and median annual Gross Sales data for the 2023 Reporting Period for (i) 63 franchisees operating a single franchised business; (ii) 25 franchisees operating two franchised businesses; (iii) 12 franchisees operating three franchised businesses; (iv) 1 franchisee operating four franchised businesses; and (v) 7 franchisees operating five to eight franchised businesses (collectively, the “Reporting Franchisees”), operating a total of 60 franchised businesses.
Single-Unit Franchisees Group
- Number of Reporting Franchisees: 63
- Average Gross Sales: $146,553
- Number and Percentage of Franchisees That Achieved at Least the Average: 19 / 39%
- Actual Highest Gross Sales: $796,226
- Actual Lowest Gross Sales: $13,860
- Median Gross Sales: $115,745
2-Unit Franchisees Group
- Number of Reporting Franchisees: 25
- Average Gross Sales: $228,982
- Number and Percentage of Franchisees That Achieved at Least the Average: 10 / 40%
- Actual Highest Gross Sales: $985,175
- Actual Lowest Gross Sales: $31,268
- Median Gross Sales: $210,040
3-Unit Franchisees Group
- Number of Reporting Franchisees: 12
- Average Gross Sales: $564,726
- Number and Percentage of Franchisees That Achieved at Least the Average: 4 / 33%
- Actual Highest Gross Sales: $1,765,341
- Actual Lowest Gross Sales: $57,761
- Median Gross Sales: $433,294
4-Unit Franchisees Group
- Number of Reporting Franchisees: 1
- Average Gross Sales: $556,965
- Number and Percentage of Franchisees That Achieved at Least the Average: 1 / 100%
- Actual Highest Gross Sales: $556,965
- Actual Lowest Gross Sales: $556,965
- Median Gross Sales: $556,965
5 to 8-Unit Franchisees Group
- Number of Reporting Franchisees: 7
- Average Gross Sales: $547,231
- Number and Percentage of Franchisees That Achieved at Least the Average: 2 / 29%
- Actual Highest Gross Sales: $1,549,340
- Actual Lowest Gross Sales: $79,841
- Median Gross Sales: $288,297
Part 2 – Report on Average and Median Inspection Fee for the Period January 1, 2023 to December 31, 2023 (2023 Reporting Period)
- This table shows separately the average and median inspection fee for the 2023 Reporting Period for (i) 63 franchisees operating a single franchised business; (ii) 25 franchisees operating two franchised businesses; (iii) 12 franchisees operating three franchised businesses; (iv) 1 franchisee operating four franchised businesses; and (v) 7 franchisees operating five to eight franchised businesses (collectively, the “Reporting Franchisees”), operating a total of 60 franchised businesses.
Single-Unit Franchisees Group
- Number of Reporting Franchisees: 63
- Average Inspection Fee: $516
- Number and Percentage of Franchisees That Achieved at Least the Average: 29 / 46%
- Actual Highest Inspection Fee: $886
- Actual Lowest Inspection Fee: $302
- Median Inspection Fee: $482
2-Unit Franchisees Group
- Number of Reporting Franchisees: 25
- Average Inspection Fee: $568
- Number and Percentage of Franchisees That Achieved at Least the Average: 9 / 36%
- Actual Highest Inspection Fee: $1,109
- Actual Lowest Inspection Fee: $378
- Median Inspection Fee: $532
3-Unit Franchisees Group
- Number of Reporting Franchisees: 12
- Average Inspection Fee: $572
- Number and Percentage of Franchisees That Achieved at Least the Average: 7 / 58%
- Actual Highest Inspection Fee: $667
- Actual Lowest Inspection Fee: $463
- Median Inspection Fee: $524
4-Unit Franchisees Group
- Number of Reporting Franchisees: 1
- Average Inspection Fee: $778
- Number and Percentage of Franchisees That Achieved at Least the Average: 1 / 100%
- Actual Highest Inspection Fee: $778
- Actual Lowest Inspection Fee: $778
- Median Inspection Fee: $778
5 to 8-Unit Franchisees Group
- Number of Reporting Franchisees: 7
- Average Inspection Fee: $669
- Number and Percentage of Franchisees That Achieved at Least the Average: 1 / 14%
- Actual Highest Inspection Fee: $1,490
- Actual Lowest Inspection Fee: $444
- Median Inspection Fee: $533
Section VI – HouseMaster Home Inspections Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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