
![]() |
HomeVestors Franchise ProfileReal Estate Franchises > Residential Brokerage |
The HomeVestors franchise requires an initial investment ranging from $109,000 to $461,250, including a franchise fee of $85,000. Franchisees should be prepared for ongoing costs, including a 2% royalty fee and a 6% marketing fee. To qualify, you need a net worth between $150,000 and $400,000, along with sufficient cash reserves to cover startup expenses.
HomeVestors franchisees can anticipate average annual revenue of approximately $1,276,046 per unit, with the potential for earnings ranging from $123,000 to $4,500,000. The average EBITDA stands at about 33.6% of revenue, indicating a healthy profit margin. With a breakeven time of around 12 months and an investment payback period of 24 months, this franchise offers a promising return on investment for dedicated operators.
HomeVestors has shown a stable presence in the franchise market, with 1,148 franchised units in 2021, slightly decreasing to 1,082 in 2023. The company has also started to expand its corporate units, increasing from 0 in 2021 to 10 in 2023. This growth trajectory suggests a commitment to strengthening the brand while providing franchisees with additional support and resources.
Franchisees benefit from comprehensive training and ongoing support from HomeVestors. The training program equips new owners with the skills needed to navigate the real estate investment landscape successfully. Franchisees receive guidance on marketing strategies, operational efficiencies, and leveraging the HomeVestors brand to maximize their business potential. This support helps franchisees build confidence and competence in managing their operations effectively.
HomeVestors Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
Net Worth Required:
Investment Payback:
Franchise Fee:
Royalty Fee:
Marketing Fee:
Breakeven Time:
Initial Investment:
Cash Required:
Average Revenue:
Median Revenue:
Highest Revenue:
Lowest Revenue:
Industry:
Category:
Leadership:
Corporate Address:
Funding Year:
Parent Company:
HomeVestors Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
Units | 2021 | 2022 | 2023 |
---|---|---|---|
Total Units | 1148 | 1144 | 1092 |
Net Change YoY | -4 | -52 | |
Franchised Units | 1148 | 1144 | 1082 |
Net Change YoY | -4 | -62 | |
Corporate Units | 0 | 3 | 10 |
Net Change YoY | 3 | 7 |
HomeVestors offers a range of investment options for aspiring franchisees, with an initial investment between $109,000 and $461,250. The franchise fee is set at $85,000, with ongoing royalty fees of 2% and a marketing fee of 6%. This structure allows franchisees to leverage a well-established brand while managing their financial commitments effectively.
Franchisees can expect an average annual revenue of approximately $1,276,046 per unit, with some units generating as much as $4,500,000. The financial performance of HomeVestors franchises indicates a strong potential for profitability, making it an attractive opportunity for entrepreneurs looking to enter the real estate investment market.
To become a HomeVestors franchisee, candidates must demonstrate a net worth between $150,000 and $400,000. Additionally, a cash requirement of at least $109,000 is necessary to ensure that franchisees have the financial resources to support their operations and marketing efforts from the outset.
Franchisees can anticipate a breakeven period of approximately 12 months, with an investment payback time of around 24 months. This relatively quick return on investment is appealing for those seeking a viable business model with a clear path to profitability.
HomeVestors has shown consistent growth in franchised units, with 1,148 units in 2021, slightly declining to 1,082 in 2023. Despite the decrease in total units, the addition of corporate-owned units suggests a strategic focus on enhancing brand presence and operational support for franchisees.
The average operating expenses for HomeVestors franchises total approximately $16,209,409, which includes salaries, depreciation, and other related costs. With a gross profit margin of 66.8%, franchisees can effectively manage their expenses while maximizing profitability, making informed financial decisions crucial for long-term success.
Frequently Asked Questions
The initial investment for a HomeVestors franchise ranges from $109,000 to $461,250. This includes the franchise fee of $85,000, along with other startup costs.